What is the SDLT rate for a property purchase priced between £125,001 and £250,000?

For a property purchase priced between £125,001 and £250,000, the correct SDLT (Stamp Duty Land Tax) rate is indeed 2%.

The SDLT rates are structured in bands, meaning that different portions of the property purchase price are taxed at different rates. For purchases above the £125,000 threshold, the portion of the price that falls between £125,001 and £250,000 is taxed at 2%. This tiered system allows for gradual taxation based on the total value of the property rather than applying a flat percentage rate to the entire purchase price.

For example, if a property is bought for £200,000, only the portion above £125,000 is subject to the 2% rate, which is calculated on the amount over £125,000. Therefore, the sum subject to SDLT in this case would be £75,000, and the duty owed would be £1,500 (2% of £75,000). Understanding that the SDLT is calculated in this manner is crucial in determining the precise amount owed based on the property price bands.