Chancellor announces sweeping reform of Stamp Duty Land Tax system in his Autumn Statement to deliver savings to 98% of residential purchasers.
Stamp Duty Land Tax Overhaul December 2014
In his Autumn Statement on 3rd December 2014, following pressure from lenders, estate agents and developers alike the Chancellor announced sweeping reform to Stamp Duty Land Tax (SDLT), disregarding the “slab” approach for a graduated rate working in a similar way to income tax that he claims will deliver savings for 98% of home buyers.
The new rates of stamp duty are below and start on 4th December 2014:
Property purchase price £510,000
£125,001 – £250,000 £125,000 x 2% = £2,500.00
£250,001 – £510,000 £259,999 x 5% = £12,999.95
= £15,499.95 new SDLT (old rate £20,400)
This is a saving of £4,900.05 against the old flat rate SDLT that would have been 4% of the purchase price equating to £20,400.
No changes for SDLT have been proposed for non-residential or mixed use properties.
Non-residential property includes:
A mixed use property is one that incorporates both residential and non-residential elements.