Stamp duty land tax falls for the majority
Mr Osborne has spelled out the new stamp duty rates in today’s autumn statement:
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.
He said: "As a result stamp duty will be cut for the 98% of homebuyers who pay it."
In the middle of buying or selling a home? If you have exchanged contracts, but not completed the deal by midnight tonight, the chancellor said: "you will be able to choose whether to pay under the old system or the new, so no one in the middle of moving house will lose out."
These changes will take effect from midnight tonight.
Tom Hayman-Joyce comments “The good news is that property prices will no longer be held back at the old thresholds (£125,000, £250,000, £500,000, £1,000,000 and £2,000,000) because the new system works the same way as income tax. It will also reduce the amount paid by the majority of house buyers but will increase it significantly for those buying at the top end of the market.”
A useful calculator can be found here: www.hmrc.gov.uk/tools/sdlt/land-and-property.htm