As of 4th December 2014, most people buying a house will pay less Stamp Duty.

Stamp Duty Land Tax (SDLT) for residential properties is now charged at different rates depending on the portion of the purchase price that falls within each rate band.

The changes will apply to residential properties completed on or after 4 December 2014.

Residential land or property - Purchase price of property SDLT rates and thresholds - Rate of SDLT
Up to £125,000 Zero
Over £125,000 to £250,000 2%
Over £250,000 to £925,000 5%
Over £925,000 to £1.5 million 10%
£1.5 million 12%

*Example: A buyer exchanges contracts for the purchase of a house for £275,000 on 5 December 2014, with completion expected to in February 2015. Under the new rules the SDLT is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250

Total SDLT payable = £3,750

*For illustration purposes only. There is no change to how SDLT is calculated on purchases of non-residential property or on the rent payable when a new lease is granted.

For further information please contact us http://www.pinkneygrunwells.co.uk/contact-us