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Stamp Duty could be cut for 98% who pay it!

If you are looking to buy or sell a property now or in the future there have been some big changes to stamp duty, which will benefit buyers and sellers alike.

The new thresholds from the 4th December 2014 are as follows;

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.

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 - like income tax.

E.g. Previously if you paid &275,000 for a property, you would pay &8250 tax, however under the new rules you would only pay &3750 tax.

Previously the stamp duty thresholds were as follows;

No tax on the first &125,000 paid

1% up to &250,000

3% up to &500,000

5% anything over &500,000

House sellers - this could potentially make it easier to sell your property particularly if you are near a stamp duty threshold as it could be far less stamp duty to pay for your buyers. E.g if your house is on the market for &135,000, you know you would accept &130,000, but you are receiving offers of no more than &125,000 because of the stamp duty, potential buyers will only need to pay &100 in stamp duty (instead of &1,300) to buy the house at &130,000.

House buyers - you could increase your budget! As stamp duty is money you need to have available and cannot be added to a mortgage, your deposit could increase, unlocking other mortgage deals that may have not been available previously!

To find out more about stamp duty and how it affects you contact us today on 01325 357807 to speak to one of our sales team or click here for more information from HMRC.

Carver Residential Estate Agents