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The New Stamp Duty Land Tax (SDLT) Rules

Posted on Monday, December 8, 2014

Under the old system, Stamp Duty Land Tax (SDLT) was calculated as a percentage of the whole property price and rose at various trigger points…


Up to £125,000


£125,000.01 - £250,000


£250,000.01 - £500,000


£500,000.01 - £1,000,000


£1,000,000.01 - £2,000,000


£2,000,000.01 +



For example, £2,500 was levied in Stamp Duty Land Tax (SDLT) when a property was bought for £250,000. However, the bill tripled when buyers paid just a penny more for a property.


The Chancellor’s announcement made a significant change to the way Stamp Duty will now be levied and the new method will mean that, in the same way as income tax, rates apply only to the part of the property price that falls within each band when it is bought, meaning…


  • No stamp duty will be paid on the first £125,000 of a property

  • 2% will be paid on the portion up to £250,000

  • 5% is paid for the portion up to £925,000

  • 10% is paid on the portion up to £1.5m

  • 12% is paid on anything above that


The new rules took effect from 4th December and anyone in the throes of buying a property, having exchanged contracts already but not completed, can choose whether to use the old or the new system.


Helpfully, a Stamp Duty Land Tax (SDLT) calculator has been created by HM Revenue and Customs, so to see how it could affect you please click on the link…