Chancellor’s stamp duty restructure in this year’s Autumn Statement
From 4 December, stamp duty land tax (SDLT) on residential property has been changed from the ‘slab’ approach – where an extra £1 of purchase price could add £40,000 to the tax bill – to a tiered, income tax style of approach, with each of five slices of value attracting a different rate (see below). The end result is that 98% of home-buyers will pay less or the same amount in SDLT, while 2% – those buying properties valued at over £937,500 – will pay more.
| Band of Residential Property Value (£) | SDLT Rate (%) |
| Up to 125,000 | 0 |
| 125,001-250,000 | 2 |
| 250,001-925,000 | 5 |
| 925,001-1,500,000 | 10 |
| 1,500,001 & over | 12 |
Example:
A property valued at £650,000 would be subject to stamp duty land tax of:
| £0-£125,000 | @ 0% | £0 |
| £125,000-£250,000 | @ 2% | £2,500 |
| £250,000-£650,000 | @ 5% | £20,000 |
| Total | £22,500 |
Under the old slab SDLT regime, a flat rate of 4% would have applied to the whole value, giving a tax bill of £26,000.
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