Stamp Duty Land Tax
(asked on 14th March 2017) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how the new rates for stamp duty land tax for first-time buyers and second-home owners have been calculated; and what estimate he has made of the effect of those new rates on the housing market.
The rates and structure of Stamp Duty Land Tax (SDLT) is set out in the below table. There are higher rates of SDLT for the purchase of additional residential properties. The higher rates are 3 percentage points above the standard SDLT rates and the latest HM Revenue and Customs data indicates that the revenue generated from the higher rates will exceed what was originally forecast when the policy was announced. An individual purchasing their first property will be subject to the standard rates of SDLT. As with all taxes, the Government keeps the SDLT regime under review.
Purchase price of property | Standard rate paid on portion of price within each band | Higher rates paid on portion of price within each band |
Up to £125,000 | 0% | 3% |
Over £125,000 and up to £250,000 | 2% | 5% |
Over £250,000 and up to £925,000 | 5% | 8% |
Over £925,000 and up to £1,500,000 | 10% | 13% |
Over £1,500,000 | 12% | 15% |