SEYMOURS’ GUIDE TO THE CHANGE IN STAMP DUTY
Chancellor George Osborne has announced an overhaul of stamp duty, which will come info effect as of midnight, Thursday 4 December.
The change means that homeowners will be subject to a graduated tax as opposed to what has been referred to in the past as a ‘slab tax’.
Until today’s Autumn statement, those buying property had to pay tax at a single rate on the entire property price. Tax was set at 1 per cent on properties over £125,000, 3 per cent over £250,000, 4 per cent over £500,000, 5 per cent over £1m, and 7 per cent over £2m.
In his fifth Autumn statement, Mr Osborne has now restructured the tax so that buyers only pay the rate of tax on the part of the property price within each tax band, similar to income tax thresholds.
There will be no tax payable for houses worth less than £125,000, 2 per cent on the portion of any value above this and up to £250,000, 5 per cent on the next portion up to £925,000, 10 per cent up to £1.5m, and 12 per cent thereafter.
Click here to find out how the new stamp duty structure affects you.