Stamp Duty Cut For Majority Of Homeowners
The best property letting agents Norwich has could soon see an increase in demand for their services following David Cameron’s Autumn Statement in which he announced that stamp duty would be cut, thus making it easier for first-time buyers to take that initial step onto the property ladder. It will also benefit people thinking of moving higher up the ladder as well.
As of today (December 4th), you will only have to pay the rate of tax on the part of the house within each tax band (much like income tax). So, if you want to buy a house costing £185,000 you’d pay nothing on the initial £125,000 and then two per cent on the outstanding £60,000. This means you’d pay £1,200 and save yourself the £650 you’d have to have paid under the old system.
According to the government, the cuts will apply to 98 per cent of people who have to pay stamp duty and if you’re purchasing a home for under £937,500 you’ll either pay less or the same amount as you would have otherwise. Those of you who completed the purchase of their home on or before December 3rd but have not yet filled their stamp duty return in will still have to pay it under the old rules.
If you’re about to buy a house or are thinking about it, your conveyancer or solicitor will be able to work out how much stamp duty you’ll have to pay, but HM Revenue & Customs also has an online calculator if you’d like to figure it out for yourself.