Stamp duty changes to blow away the barriers!
December 4th, 2014

Previous to the new Stamp Duty announcement, if you paid up to £125,000 there was no Stamp Duty liability but by paying over £125,000 it would cost you 1% or at least £1250 in tax, a significant amount which had the effect of sellers pricing houses at £125,000 which could possibly have been marketed at a higher figure.  The more significant threshold of £250,000 would result in an extra tax burden of £5,000.  Many houses that could have been worth more were sold at £250,000 as the purchasers were unwilling to pay an extra £5k for literally offering an extra £1 for the house.

With the changes you will pay 2% on the amount over £125,000, so a £130,000 purchase would now only be liable for £100 stamp duty.  With a house at £260,000 you will pay 2% between £125,000 and £250,000 and 3% between £250,000 and £260,000, the total liability for Stamp Duty being £2800 rather than the whopping £7500 payable previously.

How annoyed would you be if you had just completed the purchase of a house yesterday before the changes came into force?