Changes to Stamp Duty takes place with immediate effect
Following the Chancellor’s autumn statement, from today (04/12/2014) Stamp Duty rules on property will change. The chancellor said that from midnight, the current system, where the amount owed jumps at each threshold level, would now be replaced by a graduated rate, working in a similar way to income tax.
The new stamp duty rates will only apply to the part of the property price that falls within that band. People who are currently in the process of purchasing a home could choose which regime to operate under, said the Chancellor. “As a result stamp duty will be cut for the 98% of homebuyers who pay it.”
Other measures include:
- No tax on the first £125,000 paid
- 2% on the portion up to £250,000
- 5% up to £925,000
- 10% up to £1.5 million
- 12% on everything above that.
Our Managing Director, Kevin Hollinrake, commented on these changes and said:
“We have already had deals secured as a result of this change. In our opinion, this is great news. For too long, stamp duty has distorted the market deterring sellers from marketing their homes and buyers from buying them in the dead zones above the key thresholds such as £250,000 and £500,000. This should mean more property coming onto the market, and therefore, more sales which is good for the housing market and the economy as a whole.”
This is great news for our industry.