The Chancellor announced a major reform to Stamp Duty Land Tax in the Autumn statement. He abolished the “slab system” in which the tax tax rate for each price band was charged on the full value. It is replaced by a slightly more complex but progressive system where the rate applies only on to the value of each rate band. This will reduce the tax for most house sales.
The new rates from 4 December 2014 are as follows:
|RATE BANDS THAT APPLY TO PURCHASE PRICE||RATE PAYABLE ON PART OF PRICE WITHIN EACH BAND|
|Between £125,001 and £250,000||2%|
|Between £250,001 and £925,000||5%|
|Between £925,001 and £1,500,000||10%|
|Over £500,000 (where purchase made by corporate body)||15%|