In George Osborne’s Autumn statement, it was announced that from Thursday 4 December stamp duty will be cut for 98% of people who pay it.
What is stamp duty?
You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.*
What does this mean?
Under the old rules if you bought a house for £185,000, you would have had to pay 1% tax on the full amount – a total of £1,850. From Thursday 4 December, under the new rules, for the same property you’ll pay nothing on the first £125,000 and 2% on the remaining £60,000. This works out as £1,200, a saving of £650.
In Scotland the new rates will apply until 1 April 2015, when the Land and Buildings Transaction Tax replaces stamp duty in Scotland.
The new rates of stamp duty are:
Purchase price of property (£)
New rates paid on the part of the
0 - 125,000
125,001 - 250,000
250,001 - 925,000
925,001 - 1,500,000
1,500,001 and over
Looking for further advice about what you should be paying?
If you are in the process of buying a property, your solicitor or a Reeds Rains conveyancer will work out the stamp duty you have to pay.