Stamp Duty Reform At Last!

Stamp Duty Reform At Last!

Finally, we have something to talk about on stamp duty reform.  It has today been announced by the chancellor that the existing rates will be replaced by the following:

  • 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.

It applies from Midnight tonight, but if you’ve already exchanged contracts you can chose the option which benefits you.

So as an example, the buyer of the average house price of £272,000 (The Guardian 16.09.14) would now only pay £3600 whereas before they would have paid £8160.

An average homebuyer in London buying at £514,000 (The Guardian 16.09.14) would save £2360, now paying £18,200.

Very positive news for the majority, but there is a significant increase in SDLT if buying at above £1.5 million which is not uncommon in London and the South East.

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