Stamp duty reforms – Autumn Statement

It has been announced in today’s Autumn Statement by George Osborne, that stamp duty will be cut for 98% of homebuyers. From midnight on Thursday 4th December, the current system will be replaced by a graduated rate, working in a similar way to income tax. Under the new regime, the stamp duty rates will only apply to the part of the property price that falls within that band. No tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12 % on everything over that. Other key information about whether to use the old or new rules: Completing your purchase on and after 4 December 2014 If you exchange and complete your home purchase on or after 4 December you will pay stamp duty under the new rules. Completed your purchase before the 4 December 2014 If you completed on the purchase of your property on or before 3 December 2014, but have not yet filed your stamp duty return, you still have to pay stamp duty under the old rules. Exchanged on your contract before 4 December 2014 If you exchanged contracts before 4 December but complete on or after that date you’ll be able to choose whether the old or new rules apply. In the majority of cases you’ll pay less tax under the new rules. If you’re unsure how the changes effect you, there is a new calculator on the HMRC website here and a full PDF fact sheet here. If you’d like more information from one of our expert property lawyers please contact us. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with conveyancing solicitors in Guildford and across the country.