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Your Move Property Blog

Thoughts, Opinions & Analysis of the UK Property Market

Stamp Duty is changing

December 3, 2014 17:41 by YOUR MOVE

 

When you buy a property you have to pay stamp duty. From 4th December 2014 the amount of stamp duty paid on property has changed. It means that stamp duty will be cheaper for 98% of people who pay it. 

Under the old rules, buyers paid tax at a single rate on the entire property price. Now you will only pay the rate of tax on the part of the property price within each tax band – like income tax.

To help you understand the changes more clearly, here are a few examples using properties for sale with Your Move:

PROPERTIES UNDER £125,000

Previously, there was no stamp duty charged on properties under £125,000. This remains unchanged.

EXAMPLE:

2 bed semi-detached
Tryst Road, Stenhousemuir, Larbert, FK5
Offers over £119,950

Old stamp duty: NOTHING
New stamp duty: NOTHING

 

PROPERTIES BETWEEN £125,001 & £250,000

Previously, buyers would pay stamp duty at 1% of the whole property price. Under the new rules, buyers don’t pay stamp duty on the first £125,000. Instead they pay 2% on the remainder of the property price.

EXAMPLE:

3 bed detached house
St Cuthbert’s Close, Prudhoe, NE42  £199,950

Old stamp duty: £1999.50
New stamp duty: £1499   Saving: £500.50

 

PROPERTIES BETWEEN £250,001 & £925,000

Previously, when buyers bought a home between £250,001 & £500,000 they would pay stamp duty at 3% of the whole property price. Under the new rules, buyers don’t pay stamp duty on the first £125,000; they pay 2% on the portion of the price between £125,001 and £250,000; then they pay 5% on the portion of the price over £250,001.

EXAMPLE 1:

3 bed detached house
West Shaw, Oxenhope, Keighley, BD22  £275,000

Old stamp duty: £8,250
New stamp duty: £3,750  Saving: £4,500

 

Previously, when buyers bought a home between £500,001 and £1million they would pay stamp duty at 4% of the whole property price. Under the new rules, buyers don’t pay stamp duty on the first £125,000; they pay 2% on the portion of the price between £125,001 and £250,000; then they pay 5% on the portion of the price over £250,001.

EXAMPLE 2:

3 bed terraced house

Broxholm Road, London, SE27   £519,950

Old stamp duty: £20,798
New stamp duty: £15,997  Saving: £4,801

 

PROPERTIES OVER £937,500

For properties over £937,500 Stamp Duty is unchanged, or will have increased.

Buying just got cheaper!

If the money you could now save on Stamp Duty is making you want to buy, be sure to register for property updates with Your Move.

 




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YOUR MOVE is a multi-award winning estate and letting agent with branches across England and Scotland

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