Stamp dutychanges a boost for new property buyers

December 4, 2014 by in category Mortgage News with 0 and 0

In his Autumn Statement to the Commons,George Osborne has said stamp duty will be cut for 98% of homebuyers

Working in a similar way to income tax,
the chancellor said that from midnight the current system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate.

What will please purchase the most is that the new stamp duty rates at different band levels will only apply to the part of the property price that falls within that band, so there will no longer be a huge jump in stamp duty, for instance, on a property costing £500,001.

Here is the situation as from 4th December, under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.

People currently in the process of purchasing a home could choose which regime to operate under, Mr Osborne said.

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