Although the history of stamp duty goes back to the 1600s the current system for house purchases was largely introduced in the 1950s. Below are the historic rates and property threshold limits for homes in the UK.
From 23rd September 2022, the 0% threshold increased from £125,000 to £250,000. There is now no tax payable on any portion up to £250,000. First-time buyers also saw an increase in the 0% threshold from £300,000 to £425,000.
The changes are effective from the date shown.
The following rates covered years 1984, 1985, 1986, 1987, 1988, 1989, 1990, and 1991.
| Property Price | SDLT Rate |
|---|---|
| Up to £30,000 | 0% |
| Over £30,000 | 1% |
Due to the recession the Chancellor Nigel Lawson increased the threshold to stimulate demand.
| Property Price | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| Over £250,000 | 1% |
As demand grew the rates were put back to the original figures.
| Property Price | SDLT Rate |
|---|---|
| Up to £30,000 | 0% |
| Over £30,000 | 1% |
The basic threshold doubled as the average house price increased. These rates also applied to years 1994, 1995, and 1996.
| Property Price | SDLT Rate |
|---|---|
| Up to £60,000 | 0% |
| Over £60,000 | 1% |
A new Labour government saw an easy way to raise additional taxes, so introduced new higher bands.
| Property Price | SDLT Rate |
|---|---|
| Up to £60,000 | 0% |
| From £60,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 1.5% |
| Over £500,000 | 2% |
Less than a year later, the rates were increased again.
| Property Price | SDLT Rate |
|---|---|
| Up to £60,000 | 0% |
| From £60,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 2% |
| Over £500,000 | 3% |
In the following year's budget, the rates were increased again.
| Property Price | SDLT Rate |
|---|---|
| Up to £60,000 | 0% |
| From £60,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 2.5% |
| Over £500,000 | 3.5% |
And again at the budget in 2000 the rates increased, and they stayed the same during 2001, 2002, 2003 and 2004.
| Property Price | SDLT Rate |
|---|---|
| Up to £60,000 | 0% |
| From £60,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| Over £500,000 | 4% |
The base threshold doubled in this budget from £60,000 to £120,000 to assist first-time buyers.
| Property Price | SDLT Rate |
|---|---|
| Up to £120,000 | 0% |
| From £120,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| Over £500,000 | 4% |
The threshold was again raised in this budget, but by just £5,000 and applied during 2006, 2007 and up to September 2008.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| Over £500,000 | 4% |
Due to the Credit Crunch, a stamp duty holiday for the basic threshold started on 3rd September 2008 and finished on 31st December 2009.
| Property Price | SDLT Rate |
|---|---|
| Up to £175,000 | 0% |
| From £175,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| Over £500,000 | 4% |
The threshold was cut back to the original amount prior to the stamp duty holiday rates.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| Over £500,000 | 4% |
In a pre-election budget, the Chancellor Alistair Darling announced a new threshold for first-time buyers to stimulate demand. For first-time buyers only, the stamp duty rate was 0% for properties up to a value of £250,000 with all other bands and rates staying the same.
A new 5% rate is introduced for homes over £1,000,000.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| From £500,001 to £1,000,000 | 4% |
| Over £1,000,000 | 5% |
A new rate of 7% commences for property sales over £2,000,000. No changes occurred during 2013.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 1% |
| From £250,001 to £500,000 | 3% |
| From £500,001 to £1,000,000 | 4% |
| From £1,000,001 to £2,000,000 | 5% |
| Over £2,000,000 | 7% |
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.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 2% |
| From £250,001 to £925,000 | 5% |
| From £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
From 22nd November 2017, first-time buyers pay no stamp duty on the first £300,000 for property purchases up to £500,000. You pay no tax up to £300,000 and 5% on the portion from £300,001 to £500,000. If the property exceeds £500,000, then the standard rates apply.
A new stamp duty holiday means no standard tax charges on the first £500,000. Second home owners continue to pay 3% on properties above £40,000. The holiday was initially to 31st March 2021 but was extended to 30th June 2021 by the government on 3rd March 2021.
| Property Price | SDLT Rate |
|---|---|
| Up to £500,000 | 0% |
| From £500,001 to £925,000 | 5% |
| From £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
There were no standard tax charges on the first £250,000. First-time buyers pay no tax on homes costing up to £300,000 and 2% on the next £200,000. Second home owners continue to pay 3% on properties above £40,000.
| Property Price | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| From £250,001 to £925,000 | 5% |
| From £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Stamp Duty holiday rates source data
All temporary discounts ended on 30th September 2021 and the rates are back to pre-pandemic levels. First-time buyers pay no tax on homes costing up to £300,000 and 5% on the next £200,000. Second home owners continue to pay an additional 3% on properties costing over £40,000.
| Property Price | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| From £125,001 to £250,000 | 2% |
| From £250,001 to £925,000 | 5% |
| From £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Properties up to £250,000 pay no SDLT with the previous 2% band now removed. First-time buyers pay no tax on homes costing up to £425,000 and 5% up to £625,000. Second home owners continue to pay 3% on values above £40,000.
| Property Price | SDLT Rate |
|---|---|
| Up to £250,000 | 0% |
| From £250,001 to £925,000 | 5% |
| From £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
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.