As of midnight 03 December 2014, the slap style bands for paying stamp duty land tax have been replaced by a graduated rate scheme similar to how you pay your tax on your personal self assessment tax returns. Under the old slab system buyers would pay a single rate on the entire purchase price of the property. Under the new system, you only pay stamp duty of the proportion of the property that is in the tax band.
For example, a property bought for £400,000
£400,000 x 3% = £12,000 stamp duty payable
0–125,000 x 0%
125,000-250,000 x 2%
250,000-400,000 x 5%
= £10,000 stamp duty payable
Data Table: Stamp Duty Land Rates
Purchase Price Stamp Duty Rate
£1,500,000.01 + 12%
Submitted on 04/12/2014
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