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Until 3 December 2014, it was charged slab-style and percentages above thresholds were imposed on the full purchase price.

Reforms in the 3 December Autumn Statement by Chancellor George Osborne mean that it is now levied progressively, like income tax, with percentages stepping up above thresholds.

These new thresholds are:

0 per cent up to £125,000

2 per cent to £250,000

5 per cent to £925,000

10 per cent to £1.5million

12 per cent above £1.5million

Previously they stood at;

1 per cent above £125,000

3 per cent above £250,000

4 per cent above £500,000

5 per cent above £1million

7 per cent above £2million.

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