You’ll have seen the Chancellor’s announcement that Stamp Duty on property purchases changed from Mid-night on 3rd December. Gone is the old Slab Rate of tax and a much fairer system has been brought in to replace it. According to George Osborne, 98% of all buyers will see a benefit with a reduction in the tax paid on purchase.
Here’s the link to HMRC’s on-line calculator and here’s a few worked examples
Purchase Price Stamp Duty Payable Previously Amount Saved
£135,000 £200 £1,350 £1,150
£150,000 £500 £1,500 £1,000
£165,000 £800 £1,650 £850
£175,000 £1,000 £1,750 £750
With every penny counting, this is great news. Look at it another way, a thousand pound savings will pay your solicitor’s fees.
Perhaps not in the run-up to Christmas but in the New Year, I would expect this to give some impetus to the currently moribund housing market which should give would be buy to let investors more choice of property.
Not often a Chancellor of the Exchequer gives something this valuable away – there must be a General election coming up!
Martin & Co Norwich