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

March 15th 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.