History of Stamp Duty Taxes

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.

Historical Rates

The changes are effective from the date shown.

13th March 1984 to 19th December 1991

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%

20th December 1991 to 19th August 1992

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%

20th August 1992 to 15th March 1993

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%

16th March 1993 to 7th July 1997

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%

8th July 1997 to 23rd March 1998

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%
Over £60,000 and under £250,000 1%
Over £250,000 and under £500,000 1.5%
Over £500,000 2%

24th March 1998 to 15th March 1999

Less than a year later, the rates were increased again.

Property Price SDLT Rate
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 to 27th March 2000

In the following year's budget, the rates were increased again.

Property Price SDLT Rate
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 to 16th March 2005

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%
Over £60,000 and under £250,000 1%
Over £250,000 and under £500,000 3%
Over £500,000 4%

17th March 2005 to 22nd March 2006

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%
Over £120,000 and under £250,000 1%
Over £250,000 and under £500,000 3%
Over £500,000 4%

23rd March 2006 to 2nd September 2008

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%
Over £125,000 and under £250,000 1%
Over £250,000 and under £500,000 3%
Over £500,000 4%

3rd September 2008 to 31st December 2009

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%
Over £175,000 and under £250,000 1%
Over £250,000 and under £500,000 3%
Over £500,000 4%

1st January 2010 to 5th Apri 2011

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%
Over £125,000 and under £250,000 1%
Over £250,000 and under £500,000 3%
Over £500,000 4%

25th March 2010 to 24th March 2012 (first-time buyers only )

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.

6th April 2011 to 21st March 2012

A new 5% rate is introduced for homes over £1,000,000.

Property Price SDLT Rate
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%

22nd March 2012 to 2nd December 2014

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%
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%

3rd December 2014 to 7th July 2020

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%
Over £125,000 and under £250,000 2%
Over £250,000 and under £925,000 5%
Over £925,000 and under £1,500,000 10%
Over £1,500,000 12%

First Time Buyer Rates from 22nd November 2017 to 7th July 2020

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.

Stamp Duty Holiday 8th July 2020 - 30th June 2021

A new stamp duty holiday means no standard tax charges on the first £500,000. Second home owners continue to pay 3% on values 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%
Over £500,000 and under £925,000 5%
Over £925,000 and under £1,500,000 10%
Over £1,500,000 12%

Second Stamp Duty Holiday 1st July 2021 - 30th September 2021

There were no standard tax charges on the first £250,000. First-time buyers pay no tax on homes costing up to £500,000. Second home owners continue to pay 3% on values above £40,000.

Property Price SDLT Rate
Up to £250,000 0%
Over £250,000 and under £250,000 2%
Over £250,000 and under £925,000 5%
Over £925,000 and under £1,500,000 10%
Over £1,500,000 12%

From 1st October 2021

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 £500,000. Second home owners continue to pay 3% on values above £40,000.

Property Price SDLT Rate
Up to £125,000 0%
Over £125,000 and under £250,000 2%
Over £250,000 and under £925,000 5%
Over £925,000 and under £1,500,000 10%
Over £1,500,000 12%

Stamp Duty Changes updated September 2021

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.