Stamp duty calculator: How big a tax bill will your property purchase trigger?

Stamp duty is charged on the entire purchase price of a property.

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 and 7 per cent above £2million. 

A brief recent history of stamp duty

Before Gordon Brown's time in charge of the nation's finances stamp duty was a flat rate of one per cent above £60,000.

Additional levels were added of 1.5 per cent above £250,000 in 1997 and two per cent above £500,000.

As house price inflation took off, Mr Brown decided to cash in further by raising the tax again to three per cent above £250,000 and four per cent above £500,000 in 2000.

The 1 per cent initial level was raised to its current threshold at £125,000 in March 2006.

George Osborne raised stamp duty to five per cent above £1million in 2011, and seven per cent above £2million in 2012.

Despite the punitive nature of the higher bands, they never rose with the huge house price inflation seen since their introduction.

If stamp duty thresholds had risen in line with average property inflation since 1997, as measured by the Land Registry's quarterly house price figures, in December 2014 the would have been:

3% - £787,500

4% -£1,575,000