Stamp Duty Land Tax (SDLT)

Property Loan

New changes, with effect from 4 December 2014.
SDLT rate will apply in a similar way to income tax and the % will depend on the bands in which the property price falls within. In addition to this the rates and thresholds have changed. Transitional rules will apply where buyers have already exchanged on a home but not completed by 4 December 2014. Buyers will have a choice on whether to pay SDLT under the existing rules or new rules.

New Rules

Property Value (£) Tax rate charged on part of the property price within each tax band (%)
0 – 125,000 0
125,001 – 250,000 2
250,001 – 925,000 5
925,001 – 1,500,000 10
1,500,001 + 12

Old Rules

Property Value (£) SDLT rate
0 – 125,000 0
125,001 – 250,000 1
250,001 – 500,000 3
500,001 – 1,000,000 4
1,000,001 – 2,000,000 5
2,000,001 + 7

Example of Illustrative SDLT liability and effective tax rate before 4 December 2014 and from

Property Value (£) Before 4 December Effective From 4 DecemberEffective Change in SDLT due (£)
SDLT due (£) Tax Rate(%) SDLT due (£) Tax Rate (%)
Average price paid by first time buyer:
210,000 2,100 1.0 1,700 0.8 -400
Average UK house price:
275,000 8,250 3.0 3,750 1.4 -4,500
450,000 13,500 3.0 12,500 2.8 -1,000
500,000 15,000 3.0 15,000 3.0 0
Average house prices in London:
510,000 20,400 4.0 15,500 3.0 -4,900
800,000 34,000 4.0 32,500 3.8 -1,500
900,00 37,500 4.0 37,500 4.0 0
950,000 38,000 4.0 38.750 4.1 3,750
1,000,000 40,000 4.0 43,750 4.4 3,750