This week the chancellor released his autumn statement and here at The Purple Property Shop we’d like to inform you of the changes that have been made. Stamp Duty will be cut for 98% of people that have to pay it and the people who can afford to buy the most expensive homes, will have to pay more.

If you have just recently bought your property and your sale completed on or before the 3rd December 2014 and you haven’t yet filed your stamp duty return, you will have to pay your duty under the old rules. The changes will only apply if you are buying a home over £125,000 and the changes will NOT affect commercial properties.

To help you understand how the changes may affect you, the government have given us some examples of how much you may have to pay.

Example 1: £125,000 – NO STAMP DUTY – NO CHANGES

Example 2: £185,000 (average help to buy home) – old rules: £1,850 – new rules: £1,200 – save: £650

Example 3: £275,000 (average family home) – old rules: 8,250 – new rules: £3,750 – save: £4,500

Example 4: £510,000 (average London home) – old rules: £20,400 – new rules: £15,500 save: £4,900

Example 5: £937,500 – old rules: £37,500 – new rules: £37,500 – save: no change

Example 6: £2,100,000 – old rules: old rules: £147,000 – new rules: £165,750 – INCREASE: 18,750

The new rates will be:

  • Up to £125,000 : 0%
  • £125,001 to £250,000 : 2%
  • £250,001 to £925,000 : 5%
  • £925,001 to £1.5m: 10%
  • Above £1.5m: 12%

The new system will now also rid the process of sudden jumps in existing stamp duty thresholds. HMRC have an online calculator that will help you figure out what you should be paying in stamp duty.

If you would like any more information about the new Stamp Duty, or are looking to buy or sell your home, get in touch with us on 01204 684017. We can help you every step of the way and promise to Make Moving Happy!