The Chancellor gives Stamp Duty tax cuts to homebuyers!
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Your Guide to Decembers Stamp Duty Land Tax Changes
Are you making a saving from George Osbourne's Stamp Duty Land Tax cuts?
In his Autumn Statement the Chancellor George Osborne jettisoned the old “slab” structure, by which home buyers paid Stamp Duty on the entire purchase price of the property. Instead, he has replaced it with a “progressive” structure which, he insisted, would benefit 98% of home purchasers.
Under the new reforms:
- No SDLT payable at all on properties up to £125,000
- The first £125,000 on properties to be free of SDLT
- Then payable at 2% payable on the portion up to £250,000
- Payable at 5% on the portion up to £925,000
- Payable at 10% on the portion up to £1.5m
- Then payable at 12% on the portion over that amount.
The Chancellor expects the SDLT reforms to cost the Treasury a total of £4.4bn in the next six years. Calculations show the “pinch” point at being around the £1m mark, at which the new rate becomes a heavier burden on home buyers. However, where purchasers bought at exactly the previous “slab” thresholds of £250,000 and £500,000, there will be no difference in the amounts payable.
If you are buying a home at the moment, go to the HMRC Duty Calculator and see if there is tax saving for you.
Tony Wing DipsSurv FNAEA MRICS
Sales Director
Lincoln Office
Tel: 
01522 538888
Email:tonywing@robert-bell.org
Twitter: @robertbellandco
Please Note: Article based upon propertyeye.com summary.
