New stamp duty rules

Dr House · 3 Dec 2014 at 15:41

Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.

This is long over due but 10% is a bit excessive especially considering the cost of a house in london.

https://docs.google.com/spreadsheets/d/1Pt12fjABlvqjg9afQ7bE5JFccf1Rf1ENdPbWomW286I/edit#gid=0

bulletv1 · 3 Dec 2014 at 15:42

Woo hoo, just about to buy my first house and that's going to save me £1.5k. Think i'll put that towards a 4k tv

Trifid · 3 Dec 2014 at 15:58

The new system is meant to be better for 98% of the population. Clearly this will be a popular (and long overdue) move.

Sarah469 · 3 Dec 2014 at 15:59

so for a house between 125 and 250, you just take 125 from the value and 2% of that is what u pay? or is it 2% from the total value of the house under 250 but above 125?

chanjy · 3 Dec 2014 at 16:00

If it is worth £200k, then you pay nothing on the first £125k and 2% on the £75k above £125k

Kemik · 3 Dec 2014 at 16:15

Finally!

Great Autumn Statement all round to be honest. Shame it always comes before an election...

dowie · 3 Dec 2014 at 16:18

Dr House said:
This is long over due but 10% is a bit excessive espicellt considering the cost of a house in london.

maybe... though given that it is marginal it's effects aren't as noticeable until you get into the couple of mil upwards brackets... and that is where the foreign buyers from China, Russia etc.. come into play... given that they don't pay much tax elsewhere then it is probably a good thing to get something out of them when they buy their London pad at least

helps out middle class people anyway, especially any swing voters... as for the multimillionaire types who are getting burned by it - well they're Tory voters anyway - they're hardly likely to switch to Labour & its mansion tax

MassiveJim · 3 Dec 2014 at 16:20

Could have done with this 18 months ago

Neil79 · 3 Dec 2014 at 16:21

I can see the population being brainwashed again and voting Conseratives, how they forget

G|mp · 3 Dec 2014 at 16:22

Great news, also, if you can afford to buy a house in London I don't think the stamp duty is going to put you off.

It's like buying a Porsche and moaning about fuel.

gjrc · 3 Dec 2014 at 16:24

Neil79 said:
I can see the population being brainwashed again and voting Conseratives, how they forget

clever you! :rolleyes:

this is a smart move by the conservatives. this effectively puts an end to the ill conceived mansion tax. a smarter and simpler way to make the system fairer

delta0 · 3 Dec 2014 at 16:25

Good news! Stops prices grouping at levels.

cheesyboy · 3 Dec 2014 at 16:29

It's actually a good move IMO - the lowering of the burden at the low end, at least. I don't see any advantage to adding to the cost of geographical mobility of the population.

Perhaps I'm clouded by the fact I would have paid more than £4k less under these new rates when I bought my house.

Worth noting that a house in the £125k t £150k bracket now paid stamp duty where they didn't before.

alx · 3 Dec 2014 at 16:32

Dr House said:
Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.

This is long over due but 10% is a bit excessive espicellt considering the cost of a house in london.

It may seem like it, but on a property worth £2.1 million the stamp duty (only) increases by ~£18k, so hardly horrific when you're spending that much on a house.

You should feel sorry for us north of the border, come April the stamp duty in Scotland will be 10% between £250k and £1million which is a joke if you live in Edinburgh or Aberdeen.

aardvark · 3 Dec 2014 at 16:33

sensible policies imo

krooton · 3 Dec 2014 at 16:47

G|mp said:
Great news, also, if you can afford to buy a house in London I don't think the stamp duty is going to put you off.

It's like buying a Porsche and moaning about fuel.

It's not about putting off, it just delays things for prospective buyers, this will shave months of saving time for many people, and give them cash to actually furnish the place

G|mp · 3 Dec 2014 at 16:49

krooton said:
It's not about putting off, it just delays things for prospective buyers, this will shave months of saving time for many people, and give them cash to actually furnish the place

Should you be putting that post to the OP?

ci_newman · 3 Dec 2014 at 16:49

alx said:
It may seem like it, but on a property worth £2.1 million the stamp duty (only) increases by ~£18k, so hardly horrific when you're spending that much on a house.

You should feel sorry for us north of the border, come April the stamp duty in Scotland will be 10% between £250k and £1million which is a joke if you live in Edinburgh or Aberdeen.

Wow, I didn't realise stamp duties were different in Scotland..

blackapache · 3 Dec 2014 at 16:55

Could not have come at a better time! I complete tomorrow and it is effective from midnight tonight! Saved me 4k!

londonbairn · 3 Dec 2014 at 16:58

We are in the process of buying just within the 5% tier, and it barely saves us anything worth shouting about to be honest. Pays for the mortgage fees but in the grand scheme of the amounts meh.

Don't think it matters anyway, if they abolished it the house prices will likely go up by what you would pay anyway, as anyone buying a house is looking at the total transaction cost anyway and not just the house price.