Stamp duty shake-up in Autumn Statement
A long overdue shake-up of stamp duty has been announced in the Chancellor’s Autumn Statement today.
George Osborne said that the tax will be cut for 98% of homebuyers when he made the annual statement to the House of Commons.
It is a major boost for homebuyers, househunters and the property market – and is due to come into effect from midnight tonight.
The current system – with amounts owed jumping at each threshold level – will be replaced by a graduated rate, or sliding scale.
It means that the new stamp duty rates will only apply to the part of the property price that falls within that particular band.
The new rates mean that nothing will be paid on the first £125,000 of a property price and then 2% on the next portion of the property up to £250,000, 5% up to £925,000, 10% on the portion up to £1.5million and 12% on everything over that.
Under the old regime, stamp duty rates were zero on properties up to £125,000 and 1% on homes from £125,001 to £250,000.
The rate was 3% on homes on £250,001 to £500,000, 4% on £501,000 to £1million, 5% on £1,000,001 to £2million and 7% on £2,000,001 and above.
If you are in middle of buying a house, don’t worry; you can choose the old or new rates.
Mr Osborne also told the House of Commons that UK growth was set to be 3% this year.
Other measures included money for flood defences and roads infrastructure, a freeze on fuel duty, an increase in the ISA threshold from £15,000 to £15,240 next April and a review of business rates.
The shake-up of stamp duty is long overdue and should be of benefit to the many customers we help buy their own home every year, particularly through our surveys department where we provide an expert and fast service.
We’ve seen a 40% increase in demand for our surveys in 2014 but have also recorded a rise in demand for our other property-related services for private, public and commercial clients.
Our expert, experienced and friendly staff can offer a wide range of support, including comprehensive surveys, architecture, design, project management, risk assessments and conservation.
We also have our own in-house structural engineer with many years of experience.
You can always contact any of our team for a free no-obligation discussion about how we can help you.
Call 02392 697 193 or email [email protected] or visit our Team page on this website to contact an individual member of staff directly.
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A long overdue shake-up of stamp duty has been announced in the Chancellor’s Autumn Statement today. George Osborne said that…