UK Stamp Duty Land Tax ‘Slab’ Rule to be Abolished

15/03/2015

In the Autumn statement it was announced that the ‘slab’ rule under which SDLT is currently charged on residential properties at a single percentage of the whole price will be abolished and instead it will be charged on a marginal basis similar to income tax bands.  This new SDLT rate is effective from 4 December 2014.

The new rates and thresholds are:
Property Value Rate Band
£0 - £125,000 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
£925,001 - £1,500,000 10%
£1,500,001 + 12%

It is hoped that the change will prevent anomalies in the property market where previously prices were being kept just below a threshold in order to avoid substantial increases in SDLT.

It is anticipated that this will reduce the SDLT for around 98% of people who pay it.



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