Stamp duty changes: Good news for buyers

On 3rd December 2014, the Chancellor delivered his Autumn Statement to the Commons. 
In a rather unexpected fillip to the housing market, George Osborne has implemented reforms to how Stamp Duty Land Tax (“SDLT”) in the UK will now be charged.

Formerly, a fixed rate of tax would be applied across all properties yielding a value within a tax band. Under the new system, similar to that of income tax, SDLT will now be charged progressively on the proportion of a property’s value which falls within each tax band. 

George Osborne has claimed that 98% of homebuyers will benefit from the new reforms. This will equate to a cut of £760m in 2015/16, which represents a 15% reduction in the revenue generated by SDLT based on statistics published by HMRC for the 2013/14 tax year. There are, inevitably, some losers under the new rules. Those buying properties exceeding a value of £937,500 will see their duty

A house valued at £1m will see a rise of £3,750, whereas a house fetching a value of £3m will be stung with an SDLT hike of £63,750. 

The table below outlines the positive effect the reforms will have on house prices* in some of our local areas:

Stamp duty changes: Good news for buyers

* Figures on average house prices provided courtesy of 

It remain to be seen what impact the reforms will have on the housing market, but the move is generally positive from a buyer’s point of view.

For more information
Please contact Chris De Luca, residential conveyancing paralegal in Bedford on 01234 270600

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