HMRC STAMP DUTY CALCULATOR LINK
The Chancellor of the Exchequer said in his Autumn Statement that Stamp Duty would be cut for 98% of Homebuyers. A Christmas present from the Chancellor.
Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that..
The Treasury said someone buying a property at the average family home price of £275,000 would save £4,500, while a £2.1m purchase would carry £18,750 more stamp duty compared with the old system. The past system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate, working in a similar way to income tax.
If you are interested in calculating what the stamp duty might cost you then there is a handy calculator at the HMRC website. The link is- http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm
This is great news for homeowners who are trying to sell their home just over £250,000. The band of £250,000 to £275,000 was a difficult price range to do business at times because of the jump from 1% duty to 3%.
The system seems a lot fairer. With Banks and Building Societies wanting greater deposits from purchasers for better lending rates it should help ease the pain for buyers and hopefully give more comfort and security to the Lenders. Time will tell with the latter.
Over the past few years in Calne and surrounding Villages the higher stamp duty rates have caused issues especially to the working families who can afford the finance, have enough deposit but the extra tax was a step too far. This should enable them now we hope to get the size of home they ideally need.