What do the changes to stamp duty mean for you?
Yesterday Chancellor George Osborne said stamp duty would be cut for 98% of people who pay it. If you’re buying a home in the UK for less than £937,500 you will pay less stamp duty, or the same.
Under the old rules, you would have paid tax at a single rate on the entire property price. From 4th December you will only pay Stamp Duty on the proportion of the property price within each tax band – in a similar way to income tax.
What are the new stamp duty rates?
So what does this mean for my purchase?
All properties under £125,000 = No Stamp Duty
Old stamp duty rate = £1,259
New rate = £19
Old stamp duty rate = £2,199
New rate = £1,899
Old stamp duty rate = £9,750
New rate = £6,250
I’ve exchanged or completed around the 4th December, what does this mean for me?
Completing your sale on and after 4th December 2014
If you exchange and complete your purchase on or after 4th December you will pay stamp duty under the new rules.
Completing your sale before the 4th December 2014
If you completed on the purchase of your property on or before 3rd December 2014, but have not yet filed your stamp duty return, you still have to pay stamp duty under the old rules.
Exchanged your contact before 4th December 2014
If you exchanged contracts before 4th December but are due to complete on or after that date you’ll be able to choose whether to use the old or new rules. In the majority of cases you’ll pay less tax under the new rules.