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Stamp Duty Changes 2014 / 2015

Stamp duty has been Reduced – (if below £937,500)

Under the old rules, you would have paid tax at a single rate on the entire property price. Now you will only pay the rate of tax on the part of the property price within each tax band.

Under the old rules if you bought a house for £185,000, you would have had to pay 1% tax on the full amount – a total of £1,850. Under the new rules, for the same property you’ll pay nothing on the first £125,000 and 2% on the remaining £60,000. This works out as £1,200, a saving of £650.

Example properties

£125,000 – No stamp duty – Nil
£185,000, Reduced Stamp Duty, New Rate 0.7%, Saving £650.00
£275,000 – Reduced Stamp Duty, New Rate 1.4%, Saving £4,500.00
£510,000 – Reduced Stamp Duty, New Rate 3.0%, Saving £4,900.00
£937,500 – No change in stamp duty, New Rate 4.0%, No Change
£2,100,000 – Stamp duty increase, New Rate 7.9%, Increase £18,750

Purchase Price of Property, Rates Applied only on amount within tax band
0 – 125,000 ……………………………………0%
125,001 – 250,000 …………………………..2%
250,001 – 925,000 …………………………..5%
925,001 – 1,500,000 ………………………..10%
1,500,001 and over ………………………….12%

We are obviously all very pleased, making it cheaper and easier for people to buy property up to £937,500.

George Osborne understands the property market is crucial to having a buoyant economy. When someone buys a property, they normally buy new furniture, new kitchen, new bathroom and all the associated trades benefit, electricians, plumbers, retail shops etc. Good news for the British housing market, good news for the UK economy.

Thinking of Selling in Bournemouth, contact Clifftons Estate Agents for a free valuation.

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Posted: 4th December 2014

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