George Osborne has announced the keys points to this year’s Autumn Statement. One of which is bound to be hugely popular to homebuyers. The rate at which Stamp Duty is paid on the purchase of a residential property has been dramatically overhauled changing to a tiered incremental system as opposed to the current fixed thresholds. Details taken from BBC website of the new charges are below:
- Stamp duty rates
- Mr Osborne spelled out the new stamp duty rates.
- 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.
He said: “As a result stamp duty will be cut for the 98% of homebuyers who pay it.”
A property being purchased at the moment costing £275,000 would cost an eye watering £8250 in Stamp Duty. Under the new system, the same purchase would incur a significantly less amount of £3750 worked out as:
0% of the first £125,000.
2% of the second £125,000 = £2500.
5% of the £25,000 above £250,000 but below £925,000 = £1250.
Great news for the property market and in particular for homebuyers who could now look to save thousands of pounds from the home buying process.