A number of changes have been made to the stamp duty land tax regime, which took effect from the 4 December 2014.
The changes by the Government mean that the calculation of stamp duty land tax payable on the purchase price of a property is now more complicated. The previous ‘slab’ rates no longer apply and the new rules are more akin to those used for income tax.
The new system means that buyers continue to benefit from no stamp duty or land tax being payable on the first £125,000 of the purchase price. Different rates then apply in banded layers up to the total purchase price.
Most homebuyers will benefit from the new scheme particularly those buying homes in the £250,000 to £500,000 bracket. For example, if you are looking to buy a £275,000 house, instead of paying £8,250 in stamp duty land tax, you will only pay £3,750 which is a significant saving.
For more advice and help on stamp duty and all aspects of conveyancing call Andrew Daverson on 0191 490 0108.