History of Stamp Duty Taxes

Although the history of stamp duty goes back to the 1600s the current system was largely introduced in the 1950s. Here are the historic rates and property threshold limits for homes in the UK.

Historical Rates

The changes are effective from the date shown

13th March 1984

• Up to £30,000 - 0%
• Over £30,000 - 1%

20th December 2001

Due to the recession the Chancellor Nigel Lawson increased the threshold to stimulate demand.

• Up to £250,000 - 0%
• Over £250,000 - 1%

20th August 1992

As demand grew the rates where put back to the original figures.

• Up to £30,000 - 0%
• Over £30,000 - 1%

16th March 1993

The threshold was increased as the average house price increased.

• Up to £60,000 - 0%
• Over £60,000 - 1%

8th July 1997

A new labour government saw an easy way to raise additional taxes so introduced new higher bands.

• Up to £60,000 - 0%
• Over £60,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 1.5%
• Over £500,000 - 2%

24th March 1998

Less than a year later the rates were increased again.

• Up to £60,000 - 0%
• Over £60,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 2%
• Over £500,000 - 3%

16th March 1999

In the follow years budget the rates were increased again.

• Up to £60,000 - 0%
• Over £60,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 2.5%
• Over £500,000 - 3.5%

28th March 2000

And again at the budget in 2000 where they stayed for many years.

• Up to £60,000 - 0%
• Over £60,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

17th March 2005

The based threshold was raised in this budget.

• Up to £120,000 - 0%
• Over £120,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

23rd March 2006

The threshold was again raised in this budget but by just £5,000

• Up to £125,000 - 0%
• Over £125,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

3rd September 2008

The threshold was again raised often referred to the stamp duty holiday due to the credit crunch.

• Up to £175,000 - 0%
• Over £175,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

Rates as from 1st January 2010

The threshold was cut back to the original amount prior to the stamp duty holiday rates.

• Up to £125,000 - 0%
• Over £125,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

Current Rates as from 25th March 2010

In a pre-election budget the Chancellor Alistair Darling announced a new threshold for first time buyers to stimulate demand.

• Up to £250,000 - 0% (first time buyers only)
• Up to £125,000 - 0%
• Over £125,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 - 4%

Rates from April 2010

A new rate is introduced for homes over £1,000,000

• Up to £250,000 - 0% (first time buyers only)
• Up to £125,000 - 0%
• Over £125,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 and under £1,000,000 - 4%
• Over £1,000,000 - 5%

Rates from 1st January 2012

The first time buyer rate is taken away.

• Up to £125,000 - 0%
• Over £125,000 and under £250,000 - 1%
• Over £250,000 and under £500,000 - 3%
• Over £500,000 and under £1,000,000 - 4%
• Over £1,000,000 - 5%

Getting a mortgage

If you are thinking of getting a mortgage for a new property then check out mortgage rates website that has all the latest news on mortgages and remortgages and includes an online mortgage calculator so you can see just how much your loan is going to cost you. And if you are just looking to remortgage the loan you currently have then check out remortgage.com who can provide a quote and get a range of mortgage offers specific for your circumstances.

There are many more mortgage products available on the market these days and if you have a reasonable deposit, say around 25%, or have that amount of equity in your home and looking for other rates then the amount of available options is good. You still have the range of mortgages available such as tracker (which track the bank of england base rate in general), offset mortgages, standard variable rate and fixed rate products. If you are in any doubt or need further advice then please speak with a professional independent financial adviser who can provide expert advice on the right product for your property purchase or remortgage.

Stamp duty is only payable on the purchase of new property and not if you simply change the loan on your current home. So if you choose to remortgage there is no stamp duty payable in these circumstances.