A major reform of Stamp Duty Land Tax was announced in the Autumn statement. As a result 98% of residential property buyers will see a welcome saving whilst only those paying over £937,000 will see an increase in SDLT. Each rate will be paid only on the part of the price falling within that band. This removes the sudden leaps in duty at key thresholds – eg £250K and £500K – and is likely to affect the marketability of and prices achieved for properties valued just above those figures.
|Purchase price||Rate paid on part of property of price within each band|
|Up to £125,000||0%|
|Over £125,000 and up to £250,000||2%|
|Over £250,000 and up to £925,000||5%|
|Over £925,00 and up to £1,500,000||10%|