What do the new Stamp Duty Changes mean for you? The UK chancellor has overhauled the way Stamp Duty is calculated in his Autumn Statement which will cut stamp duty for 98% of home buyers with immediate effect.
The new system is now based on a graduated rate which means only the portion of the value that resides in the the bracket will be charged a specific rate.
|£0 – £125,000||0%|
|£125,000 – £250,000||2%|
|£250,001 – £925,000||5%|
|£925,001 – £1,500,000||10%|
What does that actually mean? There is no doubt that for more expensive properties you will pay more Stamp Duty but there are also areas where the old rules would have been better. The visual graphic above shows those points but a summary is below
- You will pay LESS stamp duty for any property below £937,000
- You will pay MORE stamp duty for any property between £937,000 & £1,000,000
- You will pay LESS stamp duty for any property between £1,000,000 & £1,125,000
- You will pay MORE stamp duty for any property above £1,125,000
We await to see the impact of the Stamp Duty changes on UK house prices in the coming months.