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 |
| 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 |
| 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 |