Stamp Duty Rates cut for the majority of purchasers!

Wed 3 December 2014

It is a rare event when the Government announce changes which make the majority of our buyers better off but today George Osborne has announced a change in the way Stamp Duty Land Tax is calculated. The changes take effect from midnight tonight.

Under the old system stamp duty was levied on the whole amount of the purchase price, from

1% – 5 % in four different bandings.

From midnight a purchaser will only pay tax on a purchase price of over £125,000 and at a rate within each price band, like income tax.

For example

Previously a buyer purchasing a home at £185,000 would have paid stamp duty of £1850

Under the new rules they would pay a sum of £1200 a saving of £650 !

Our Industry has been calling for changes to Stamp Duty for many years. From tomorrow we believe it is a much fairer system and will save 98% of buyers money. So good news for purchasers, good news for vendors and good news for the housing market!

The new calculation is as follows

oNo tax on the first £125,000 paid

o2% on the portion up to £250,000

o5% up to £925,000

o10% up to £1.5 million

o12% on everything above that.

The Government have provided a quick calculator at

http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm

Debbie Anderson – Property Chairman