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

The following rates covered years 1984, 1985, 1986, 1987, 1988, 1989, 1990, and most of 1991.

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

20th December 1991

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 were put back to the original figures.

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

16th March 1993

The basic threshold doubled as the average house price increased. These rates also applied to years 1994, 1995, and 1996.

  • 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 following year's 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 the Rates increased, and they stayed during 2001, 2002, 2003 and 2004.

  • 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 base threshold doubled in this budget from £60,000 to £120,000 to assist first-time buyers.

  • 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 and applied during 2006, 2007 and up to September 2008.

  • 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

Due to the Credit Crunch, a Stamp Duty Holiday for the basic threshold started on 3rd September 2008 and finished on 31st December 2009.

  • 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 31st December 2011.

  • 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%

Rates from 21st March 2012

A new rate of 7% commences for property sales over £2,000,000. No changes occurred during 2013.

  • 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 and under £2,000,000 - 5%
  • Over £2,000,000 - 7%

New Rates and Structure from 3rd December 2014

Stamp Duty is now only payable on the portion of value of the bracket it falls into. Effectively, the first £125,000 of a property purchase is completely free of tax. The next £125,000 is payable at 2% (or £2,500) etc.. No changes to core property taxes were made during 2015. New Buy-to-Let rates apply from 2016. More information on Buy-to-Let changes here.

  • Up to £125,000 - 0%.
  • Over £125,000 to £250,000 - 2%.
  • Over £250,000 to £925,000 - 5%.
  • Over £925,000 to £1,500,000 - 10%.
  • Over £1,500,000 - 12%

Getting a Mortgage

If you're thinking of getting a mortgage for a new property, then check out MortgageRates website that has all the latest news on mortgages and remortgages. The site includes the Mortgagerates.org.uk online mortgage calculator so you can see just how much your loan is going to cost you.

And if you're just looking to remortgage the loan you currently have, then check out remortgage websites 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're 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.