Stamp Duty rates changed in the December 2014 budget. Now you pay higher rates only on the proportion of the property price in the higher bands. Also, from April 2016, buyers of buy-to-let and second homes will pay additional stamp duty.
Here's our handy guide to the new rates.
|Brackets||Standard rate||Buy-to-let/second home rate (from April 2016)|
|Up to £125,000
|£125,001 - £250,000
|£250,001 - £925,000
|£925,001 - £1.5m
Rates under the new system are based on various portions of the sale price e.g., for a sale price of £600,000 there is no tax to pay on the first £125,000, then 2% is payable on the portion between £125,000 - £250,000 (£2500) and 5% payable on the portion between £250,000 - £600,000 (£17,500): total tax due = £20,000.
Under the previous system tax was payable at 4% on the £600,000: total tax due = £24,000.
Stamp Duty Calculator
To calculate how much you will now pay in stamp duty from 2014 use the Trading Places Stamp Duty Calculator.