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:
£0 - £125,000
£125,001 - £250,000
£250,001 - £925,000
£925,001 - £1,500,000
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.