Stamp Duty Explained – Latest from the Chancellor
16/3/15
Topic: House Buying
Latest from the Chancellor.
Stamp duty taxes on property purchases will be reformed so they are calculated more like income taxes, with new rates payable only on the portion of the total value which falls within each band.
As a result, 98 per cent of people in the UK who pay stamp duty will be better off. This means that someone buying a family home with a typical price tag of £275,000 will save £4,500 compared with the current rules, although very high-end purchases will see an increase.
Anyone buying a home less than £937,500 will either pay less stamp duty or the same amount under the new rules.
This, according to several sources could trigger a small increase in property prices and sales of homes worth for up to the £937,500 tipping point, and a small decrease in prices and activity above this level. In London, 91 per cent of those paying the duty will be better off under the new rules.
| Brackets | Rate |
| £0-£125,000 | 0% |
| £125,001-£250k | 2% |
| £250,001-£925k | 5% |
| £925,000-£1.5m | 10% |
| £1.5m+ | 12% |
For example:
If you purchased a property of £135,000 using the Previous stamp duty calculation it would have cost £1,350. The new stamp duty calculation will be;
£135,000- minus £125,000 = £10,000 x 2% = £200 a saving of £1150.
If you would like to talk further regarding the latest stamp duty news and charges, feel free to speak to an Open Vision Finance advisor who can assist and advise throughout the house buying process. www.openvisionfinance.com
