Stop Press – Changes to Stamp Duty

Morrish SolicitorsProperty, Site News, UncategorisedLeave a Comment

The Chancellor has announced major changes to Stamp Duty in his Autumn statement.  These changes will come into effect from midnight tonight.

From now on, the first £125,000.00 of ALL purchase properties will be free from Stamp Duty.

The portion of the price from £125,000.00 to £250,000.00 will now be paid at 2%.

The next portion up to £925,000.00 will be paid at 5%.

The portion from £925,000.00 to £1.5 million will be paid at 10%.

Anything over £1.5 million will be paid at 12%.

This means that if you are buying a house for £300,000.00, you will pay Stamp Duty at 0% up on the first £125,000.00.  2% on the portion from £125,000.00 to £250,000.00 (ie £125,000.00 = £2,500.00). 5% on the portion from £250,000.00 to £300,000.00 (ie £50,000.00 = £2,500.00.

Therefore the total amount of stamp duty payable on a property worth £300,000.00 will be £5,000.00.

This represents a significant saving to the majority of purchasers.  Currently, Stamp Duty is payable at a flat rate of 1% for properties worth up to £250,000.00, 3% for properties worth up to £500,000, 4% for properties worth up to £1 million, and 5% on properties over £1 million.

So currently, the Stamp Duty payable on a £300,000.00 purchase is £9,000.00.

If you have already exchanged contracts on a purchase, but completion has not yet taken place, you can opt to pay under either the old or the new system.

For more information on how this might affect you, please contact our conveyancing department on 033 3344 9600, email info@morrishsolicitors.com or complete our contact form.

 

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