Fiscal Policy - Stamp Duty

This note looks at the changes made to Stamp Duty by the Chancellor George Osborne in his December 2014 Autumn Statement.

Stamp Duty is a tax paid on the market price of a property purchased in the United Kingdom

Prior to December 2014, stamp duty was charged at a single percentage rate on the whole purchase price of a property, with different rates for different value bands.

Under the revised system, the rate of stamp duty will vary in a similar way to the banding system for income tax

• For homes valued between £0 and £125k the marginal rate of tax will be 0%
• For homes valued between £125 and £250k the marginal rate of tax will be 2%
• For homes valued between £250K and £925k the marginal rate of tax will be 5%
• For homes valued between £925k and £1.5m the marginal rate of tax will be 10%
• For homes valued over £1.5m the marginal rate of tax will be 12%