< Go back to news home

New Stamp Duty Rates

The Stamp Duty system for residential properties has been reformed in the Autumn Statement and the changes took effect on 4 December. According to George Osborne stamp duty will be cut for 98% of homebuyers.

The new graduated system will work in a similar way to income tax. So each new stamp duty rate will only be payable on the portion of the property value which falls within each band (rather than tax being due at one rate on the entire property value).  Transitional rules will apply where contracts were exchanged before 4 December but the transaction completes on or after that date. In that situation, buyers will be able to choose to pay under the old rules or the new rules, whichever is more beneficial for them.

The new Stamp Duty rates are:

Purchase Price %
Up to £125,000 0%
From £125,001 to £250,000 2% on this slice
From £250,001 to £925,000 5% on this slice
From £925,001 to £1.5M 10% on this slice
Over £1.5M 12% on this slice

The new Stamp Duty rates – what it will mean to you:

Sale price Tax before Tax after Gain/loss
£125k Zero Zero Zero
£150k £1,500 £500 -£1,000
£175k £1,750 £1,000 -£750
£200k £2,000 £1,500 -£500
£225k £2,250 £2,000 -£250
£250k £2,500 £2,500 Zero
£275k £8,250 £3,750 -£4,500
£300k £9,000 £5,000 -£4,000
£350k £10,500 £7,500 -£3,000
£400k £12,000 £10,000 -£2,000
£500k £15,000 £15,000 Zero
£600k £24,000 £20,000 -£4,000
£700k £28,000 £25,000 -£3,000
£800k £32,000 £30,000 -£2,000
£900k £36,000 £35,000 -£1,000
£1m £40,000 £43,750 +£3,750
£1.25m £62,500 £68,750 +£6,250
£1.5m £75,000 £93,750 +£18,750
£2m £100,000 £153,750 +£53,750
£3m £210,000 £273,750 +£63,750
£5m £350,000 £513,750 +£163,750
£10m £700,000 £1,113,750 +£413,750
£20m £1,400,000 £2,313,750 +£913,750

For further information there is a fact sheet … https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382324/Stamp_Duty_15.pdf

HMRC has an online calculator to help you work out how much stamp duty you will have to pay:

http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm

Posted on Friday, 5th December, 2014
RightmoveZooplaPrimelocationUK Land & Farms