STAMP DUTY CHANGES HOW DOES EFFECT YOU

Author - Jason Whitehead

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STAMP DUTY CHANGES HOW DOES EFFECT YOU

With the announcement of the stamp duty changes in the  Autumn Statement, Chancellor George Osborne, has announced sweeping changes to the system of Stamp Duty. The current system of whichever banding the property price falls into being levied on the whole of the value of the property, will be replaced by one of gradients so that different rates will apply depending on the portion of the purchase price that falls into each rate band

 
Purchase price of property                               Rate of SDLT

Up to £125,000                                                                               Zero

Over £125,000 - £250,000                                                          2%

Over £250,000 - £925,000                                                         5%

Over £925,000 - £1,500,000                                                     10%

Over £1,500,000                                                                              12%

 
Example: A buyer exchanges contracts for the purchase of a house for £275,000 on 5 December 2014, with completion expected to in February 2015. Under the new rules the 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