As of midnight December 4th 2014, chancellor George Osborne made changes to the stamp duty land tax, which means a reduction in cost for 98% of us, only the highest value property purchasers will pay more.
The old system meant you paid a fixed percentage on the whole amount, whereas the new system is tapered;
- No Tax on the first £125,000
- 2% £125,001 - £250,000
- 5% £250,001 - £925,000
- 10% £925,001 - £1.5million
- 12% on any amount over £1.5million
With the old system someone buying a property for £200,000 would have paid 1% on the whole amount (£2,000), with the new system you pay no tax on the first £125,000 and 2% on the remaining £75,000 (£1500) meaning a saving of £500. Generally it's good news for the majority and it will certainly help first time buyers get on the property ladder, but how does it effect us locally.
Recalculate Stamp Duty Amount
Total SDLT due
Below is a breakdown of how the total amount of SDLT was calculated.