Stamp Duty Reforms Announced In Chancellor’s Autumn Statement

Significant reforms to stamp duty levels have been announced in today’s Autumn Statement by the Chancellor of Exchequer, George Osborne.

Stamp duty is a tax payable on any residential property purchased at a price over £125,000.

From 4th December, according to the HM Treasury, Stamp Duty will be cut for 98% of those eligible to pay it on homes purchased up to £937,000.

Previously, stamp duty would be paid at a single rate on the entire property price.

From tomorrow, only the rate of tax on the part of the property price within each tax band will be payable (like the income tax system).

Example Stamp Duty Calculation

Prior to 4th December 2014

Purchase Price –  £185,000,

1% tax Stamp Duty payable on the full amount – £1,850.

After 4th December 2014

Purchase Price – £185,000

First £125,000 exempt from Stamp Duty

2% stamp duty payable on the remaining £60,000 – £1,200,

Under the new rules, in this example the purchaser would save £650.

Full details of the new rates can be found at the following link:

HM Treasury Stamp Duty Reform Details

Stuart Taphouse – Director & Head of Residential Property, BRM Solicitors

About the author

Stuart Taphouse is a director and Head of Residential Property at our Chesterfield office. For further advice on this topic or other matters, please contact Stuart by telephone on 01246 564043 or email stuart.taphouse@brmlaw.co.uk

For more advice on this topic or related matters:

stuart.taphouse@brmlaw.co.uk