Stamp duty land tax (SDLT) on residential properties is charged at different rates according to a band system.
Rates are applied only to the portion of the property's value that exceeds the relevant band threshold. This replaces the previous 'slab rate' system under which SDLT was charged against the total property value.
If you exchanged contracts on or before 3 December 2014 but the transaction is completed on or after 4 December, you can choose whether you follow the current or the old rules.
The land and buildings transaction tax replaces stamp duty in Scotland on 1 April 2015. Current SDLT rules will also apply in Scotland until then.