Filter news articles:

Stamp Duty Changes

Good news for the residential property industry…buyers up to £937,500 will pay less Stamp Duty or be no worse off!

 

The Chancellor has announced changes to the Stamp Duty payable on residential property.  The changes take effect from 4th December 2014. Click on the following link for further details – https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382324/Stamp_Duty_15.pdf

 

The new rates are as follows;

 

Purchase price of property (£) New rates paid on the part of   the property price within each tax band
0   – 125,000 0%
125,001   – 250,000 2%  
250,001   – 925,000 5%
925,001   – 1,500,000 10%
1,500,001   and over 12%

 

Examples

 

Example properties Tax paid under the old rules Tax paid under the new rules Change in amount of tax paid Effective tax rate you’ll pay under the new rules
£125,000   – No stamp duty No   stamp duty No   stamp duty No   stamp duty No   stamp duty
£185,000   – Average Help to Buy home £1,850 £1,200 Saving:   £650 0.7%
£275,000   – Average family home £8,250 £3,750 Saving:   £4,500 1.4%
£510,000   – Average London home £20,400 £15,500 Saving:   £4,900 3.0%
£937,500   – No change in stamp duty £37,500 £37,500 No   change 4.0%
£2,100,000   – Stamp duty increase £147,000 £165,750 Increase: £18,750 7.9%

 

For the purchase of a house for £275,000, under the new rules SDLT 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 SDLT payable                = £3,750

 

Work out how much you will have to pay

 

HMRC has an online calculator to help you work out how much stamp duty you will have to pay.