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Thu 5 February 2015
A colleague of mine wrote a recent article about the changes made by government to Stamp Duty, applicable to buyers of property over £125,000 but over the past few months it would seem that the average consumer is still very much unaware of the savings they now make especially when looking to purchase in a price bracket between £250,000 and £300,000.
Until last November a house that sold at over £250,000 attracted a Stamp Duty tax of 3% (some £7,500 plus) on the entire purchase monies. The new stamp duty regime has created a tiered system of charging, which although much more difficult to calculate, does provide for significant savings in certain price brackets.
Under the new system
Therefore, if you buy a house at £260,000 you will now pay £3,000 in Stamp Duty rather than £7,800 under the old system.
Historically, as estate agents, we have always found it very difficult to sell houses with an asking price of between £250,000 and £275,000 because of the significant increase in stamp duty once exceeding a sale price of £250,000. But now this significnat financial barrier has been removed we expect houses with an asking in the range of £250 - £275k too see increased levels of interest.
If you have a property to sell or are think of buying and your still not sure what tax you might pay please contact one of our offices and we will be more than happy to help calculate what you might pay with your budget.
Brecon Office 01874 610990