Stamp duty changes – Chancellor’s 2014 Autumn Statement
Within George Osbourne’s 2014 Autumn Statement are changes to the current ‘slab structured’ stamp duty land tax system. Currently the tax does not apply to properties purchased for under £125,000 but after that buyers pay one per cent of the purchase price on properties costing up to £250,000. From £250,001 to £500,000 the rate is three per cent and thereafter four per cent up to £1million.
From midnight today (3rd December 2014) the new structure will be;
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.
How could this affect you;
Under the current Stamp duty land tax structure buyers spending the average house price reported by Estate Agents in Crawley of £236,890 (data from Rightmove) would pay a tax of £2,368.90. Under the new system the stamp duty payable would be £2,237.80.
For a buyer spending £300,000 on a property the current stamp duty payable would be £9000.00. Under the new system it would be just £5,000.00
For more information regarding the new Stamp Duty Land Tax please call Greenaway Residential Estate Agents on 01293 561188.