Changes to Stamp Duty
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.