Unexpected Stamp Duty reform

Unexpected Stamp Duty Reform

The chancellor’s autumn statement included a surprise reform of the stamp duty system. From midnight anyone buying a property in the UK will face a new set of rules.

The original structure has been scrapped and from midnight (3rd December 2014) the tax will be applied like income tax.

There will still be no tax on purchases up to £125,000.


Above that there will be several bands:

• Between £125,001 and £250,000 the rate will be 2%

• Between £250,001 and £925,000 the rate will be 5%

• Between £925,001 and £1.5m the rate will be 10%

• Above £1.5m the rate will be 12%.


On a £180,000 house purchase there will be no tax to pay on the first £125,000, then 2% on the remaining £55,000, which is a total bill of £1,100, versus £1,800 before the changes.

On a £300,000 house purchase there would be no tax to pay on the first £125,000, then 2% on the next £125,000 (£2,500) and 5% on the last £50,000 (£2,500). That’s a total £5,000 compared with £9,000 under the previous system.

This is good news for anyone buying a house that costs less than £937,000, which represents 98% of households. Anyone spending more will face a higher

bill.

In my opinion this will benefit a huge amount of people looking to buy in Colchester, Clacton, Harwich, Braintree and Chelmsford.

Read :- Stamp duty reform

If you require further information contact More Estate Agents in Colchester on 01206 767673.