Stamp Duty changes from 4th December 2014

Published ¤ 03/12/2014 22:10:02

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SDLT rates from 4 December 2014

From 4 December, SDLT for residential property is charged at different rates depending on the portion of the purchase price that falls within each rate band. There is no change to how SDLT is calculated on purchases of non-residential property or on the rent payable when a new lease is granted.

The changes will apply to residential properties completed on or after 4 December 2014. Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether to use the old or the new rules.
Purchase price of property Rate of SDLT
Up to £125,000 Zero
Over £125,000 - £250,000 2%
Over £250,000 - £925,000 5%
Over £925,000 - £1,500,000 10%
Over £1,500,000 12%
Example: A buyer exchanges contracts for the purchase of a house for £275,000 on 5 December 2014, with completion expected to in February 2015. 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
If you have any concerns over the amount of stamp duty you will pay, please get in touch with PKS!

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