From December 2014 SDLT is now charged at increasing rates for each portion of the purchase price rather than a set amount for the whole purchase price.
SDLT rates and thresholds for residential properties
Property purchase price
Up to £125,000
The next £125,000 (the portion from £125,001 to £250,000)
The next £675,000 (the portion from £250,001 to £925,000)
The next £575,000 (the portion from £925,001 to £1.5 million)
The remaining amount (the portion above £1.5 million)
SDLT rate from 4 December 2014
Example of new Stamp Duty Calculations
A buyer exchanges contracts for the purchase of a house for £345,000 on 11 November 2015, with completion expected in December 2015. The SDLT on the property is calculated as follows.
0% on the first £125,000 (a)
2% on the next £125,000 up to £250,000(b)
5% on the final £95,000 up to £925,000 (c)
Total SDLT (a + b + c)
If you exchanged contracts before 4 December 2014 you may be entitled to pay SDLT using the old rules.
What is stamp duty? The Basics.
Video Credits: Paul Archer