Chancellor reveals new Stamp Duty charging structure

4 Dec, 2014

The government has announced that it is to do away with the much criticized ‘single slab’ approach to stamp duty on residential property purchases.

In his Autumn Statement message George Osborne announced that he would be introducing a new tiered charge from 4th December and claimed that “As a result stamp duty will be cut for the 98% of homebuyers who pay it.”

Until now, buyers have had to pay 1 per cent tax on a £250,000 home, but 3 per cent on one costing £250,001, something that many mortgage and property experts have been asking to be changed for years as it was deemed to be unfair.

The revised tiered approach means that from 4 December, the Stamp Duty Land Tax charges will be levied as follows:

  • No tax on the first £125,000 of purchase price;
  • Then 2 per cent on amount up to £250,000;
  • Then 5 per cent up to £925,000;
  • Then 10 per cent up to £1.5m;
  • Then 12 per cent on everything above £1.5m