Stamp Duty

Stamp Duty



Stamp Duty was invented by the Dutch in 1624 and was first levied in the UK during 1694.  Stamp Duty Land Tax (SDLT) was introduced in December 2003 and replaced the old Stamp Duty payable on the purchase of a property or land.

From 4th December 2014 the amount of tax payable depends on the purchase price and is payable on each portion of the purchase price that falls within the bands as follows:-


Up to £125,000.00 = No Stamp Duty

Over £125,000.00 to £250,000.00 = 2% Stamp Duty payable

Over £250,000.00 to £925,000.00 = 5% Stamp Duty payable

Over £925,000.00 to £1.5 million = 10% Stamp Duty payable

Over £1.5 million = 12% Stamp Duty payable

 
Stamp Duty is paid based on the whole value of the property; so, if you are buying a property at £275,000.00, you would have to pay £3,750.00 in tax on completion calculated as follows :-

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total SDLT payable = £3,750

There is a very useful HMRC calculator, which actually calculates the amount of SDLT payable, at the link below.

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



December 2014