Changes to Stamp Duty

December 4, 2014 12:22 pm Published by

The Chancellor in yesterday’s autumn statement transformed the way stamp duty is charged on residential property transactions, effective from 4 December 2014.

Prior to Gordon Brown’s tenure as Chancellor, stamp duty was payable at a flat rate of 1% above on purchases above £60,000.00.  This system was tweaked and varied though the last decade into a system that charged a percentage of duty against the whole of the price.    

Now, the duty is payable in a similar style to income tax so that tranches of duty are payable according to what payment band they fall in.  If you were buying a house for £157,000.00 under the old rules, the duty payable would have been £1,570.00.  From today, the duty is charged at nil up to £125,000.00 and 2% between £125,001 – 157,000.00 meaning, the amount payable is £640.00.  Savings like these are anticipated for most purchases spending less than £937,500.00 on their property.  Good news for the masses!

If you would like more information on the payment of stamp duty on residential property – get in touch with us on 01473 230033 to speak to Kim Caley.

 

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