December 2014 UK Stamp Duty Changes

[olismith89]

Hi there, Currently trying to work out how to calculate stamp duty in Excel as the rates changed yesterday. The new stamp duty rates are as follows:

Purchase price of property	Rate of <abbr title="Stamp Duty Land Tax">SDLT</abbr>
Up to £125,000	Zero
Over £125,000 to £250,000	2%
Over £250,000 to £925,000	5%
Over £925,000 to £1.5 million	10%
Over £1.5 million	12%

<tbody>
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These percentages are only paid on the excess of the value stated. Here is an example: A buyer exchanges contracts for the purchase of a house for £275,000, Under the new rules the <abbr title="Stamp Duty Land Tax">SDLT</abbr> is calculated as follows:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total <abbr title="Stamp Duty Land Tax">SDLT</abbr> payable = £3,750

This makes the formula a little trickier than before, but I'm sure that you can help me

 

[MARK858]

I would prefer a few more examples to test the results but try

Excel Workbook
	A	C	D
1	275000		3750
Sheet3

 

[pjmorris]

Hi Mark,

I was trying to work out how to use SUMPRODUCT for this - but wasn't getting close. Many thanks for the answer - my Excel knowledge has just taken a boost!

Regards

 

[olismith89]

Mark, thanks for the lightning quick response and the correct formula. Works perfectly!

 

[MARK858]

Hi Mark,

I was trying to work out how to use SUMPRODUCT for this - but wasn't getting close. Many thanks for the answer - my Excel knowledge has just taken a boost!

Regards

Hi Peter, I learnt how this originally by reading the McGimpsey method to calculate variable rates and commissions.

Please see the link below as I have always found it useful.

http://www.mcgimpsey.com/excel/variablerate.html

@ olismith89 happy it helped