The Government have announced that with effect from 4 December 2014, SDLT (Stamp Duty Land Tax) for residential property is now going to be calculated differently. It will be charged at different rates depending on the portion of the purchase price that falls within each rate band. The new rates and thresholds are as follows:-
| Purchase Price of Property | Rate of SDLT |
|---|---|
| Up to £125,000 | Zero |
| Over £125,000 to £250,000 | 2% |
| Over £250,000 to £925,000 | 5% |
| Over £925,000 to £1.5 million | 10% |
| Over £1.5 million | 12% |
For example, if a buyer purchases a house for £275,000, under the new rules, the SDLT is 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
Previously they would have paid £8250.
To further assist in calculating SDLT under the new rules, there is a Conveyancing Calculator on our website. Not only can it be used for calculating SDLT, but it can provide a full breakdown of our fees and third party costs not just for purchases, but for a range of other conveyancing transactions too.
If this article raises any questions for you, please do not hesitate to contact us on 01202 499255 and Helen or a member of the Conveyancing team will be happy to help.
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