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.