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
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