Trowers & Hamlins

Sign up

Home » News » Press Releases » Autumn Statement 2014: Reform of SDLT rates…

Autumn Statement 2014: Reform of SDLT rates on residential property

Autumn Statement 2014: Reform of SDLT rates on residential property

The Chancellor announced in the Autumn Statement on 3 December 2014 that the "slab" system of stamp duty land tax (SDLT) rates for residential property will be abolished as from midnight with a top rate of SDLT of 12%.

Andrew Sneddon, Head of Tax at law firm Trowers & Hamlins, commented:

"This was a surprise, although it has already been adopted by the Scottish authorities. The effect will be to reduce the SDLT cost for purchases for less than £937,500 and increasing the SDLT cost for purchases above that level.  Clearly this will have an adverse effect on property values above that tipping point and this will therefore have a disproportionate impact on the London market.  In addition, the top rate of 12% is not significantly lower than the 15% rate which the Government introduced to stop people avoiding SDLT by buying high value houses in companies.  Increasing the top rate of SDLT to 12% could therefore encourage people to engage in exactly the type of SDLT planning which the Government has been keen to prevent."