2014 Stamp Duty Changes

Before 4 December 2014, SDLT was charged as a single percentage of the property price.

After 4 December 2014, SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band.

This is viewed as more “fare” whilst someone purchasing a property at £126k was charged a rate on the full price; previously someone paying £125k was not. This new system would mean the person paying £126k – is only charged a rate on £1k. It has now been changed to proportions.

Chancellor George Osborne - Tax Changes

With these changes – do come modifications of the Property Brands some increases – so it is hard to put a finger on the winners and loosers. Overall the government expects the SDLT reforms to cost the Treasury a total of £4.4bn in the next six years.

These changes come after the Conservative Chancellor George Osborne announced that he would be completely reforming what he described as a “badly designed tax on aspiration”.

New Property Value Bands

£0 – £125,000 – 0%
£125,001 – £250,000 – 2%
£250,001 – £925,000 – 5%
£925,001 – £1.5 million – 10%
Over £1.5 million – 12%

Side by Side Comparison of Changes:

Stamp Duty Changes Comparison

What is SDLT or Stamp Duty?

Stamp duty land tax, to give it its full name, is a tax you pay when you buy a home. You have to pay if you buy a property in the UK over a certain price. It doesn’t matter if it is somewhere you hope to live or a buy-to-let property. This is charged on all purchases of houses, flats and other land and buildings.

Is this good news for me?

Everyone buying a house costing less than £937,000, says the Treasury, or about 98% of households – this means savings. Anyone spending more will face a higher bill. If you are spending £2.1m on a home you will pay £165,750 under the new regime versus £147,000 previously.

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Posted in Buy to Let News, Residential Mortgage News
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