What is Stamp Duty?
Stamp duty land tax (or Land and Buildings Transaction Tax in Scotland) is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate of tax you’ll pay varies depending on the price and type of property (we’ll focus on residential buildings, rather than commercial).
Changes to stamp duty were announced in the Chancellor’s Autumn Statement in 2014. Stamp duty has been changed – the slab system (where you’d pay a single rate on the ENTIRE property price) has been swept away, and in its place is a more progressive system.
Under the new system, you’ll only pay the rate for the proportion of the property that’s at that rate.