8. December 2014 16:02
This week, the Stamp Duty rates in Scotland, England and Wales changed, giving a boost to anyone hunting for a new home. Here’s a short summary of the changes to help you understand what the new rates mean for you when you’re looking for a new home, including how much money you can save when you make a move.
In the August Statement to the Commons, the Chancellor announced that the system would change to a “graduated rate”. Basically, this means that Stamp Duty will work in a similar way to income tax, the rate you pay will more closely match the price you pay for your home.
Under the new rules, the Stamp Duty that applies to new homes is as follows:
- The first £125,000 of a property – zero Stamp Duty
- The value of a property between £125,000 and £250,000 – 2% Stamp Duty
- The value of a property between £250,000 and £500,000 – 5% Stamp Duty
- The value of a property between £925,000 and £1.5 million – 10% Stamp Duty
- The value of a property over £1.5million – 12% Stamp Duty
To help you understand what these changes mean for you, the UK Government’s website has created a helpful illustration of these new rates to explain how much Stamp Duty you will be expected to pay when you buy a new home.
The new Stamp Duty rates at different band levels will only apply to the part of the property price that falls within that band. This means there won’t be a large jump in Stamp Duty price when the price of your new home exceeds a stamp duty threshold. As a result, most customers buying a new home will benefit from a big saving on their Stamp Duty - and that’s always good news!
This change to the Stamp Duty rates makes moving in to the perfect new home more affordable than ever before. For example, choosing this new four bedroom detached family home at Tal Y Coed in Mold will save you over £4,000 under the new Stamp Duty rates.
If you want to know more about the new Stamp Duty rates, speak to us about arranging a free appointment with an independent financial advisor, or arrange a visit to your perfect new home today.