In his Autumn Statement George Osborne announced some welcome news for homebuyers. Revealing a new graduated approach to stamp duty, Osborne has ensured the British public that 98% of homebuyers will be pay less duty on property purchases from today.
The new rules indicate that those buying property worth less than £900,000 for instance, should see a saving in the amount of stamp duty they pay.
Unlike the current system, the new system will work in a similar way to income tax. The rate of duty will only be applicable on the proportion of value above each threshold, rather than the complete property amount. This will avoid homebuyers facing a huge jump in costs as the property price increases.
Under the new regime, a homebuyer purchasing a property for £275,000, for example, will pay nothing on the first £125,000, 2% on the next £125,000 and 5% on the remaining £25,000, resulting in a total tax duty of £3,750. Under the old rules a homebuyer purchasing a property for £275,000 would have paid 3% on the total purchase price, i.e. £8250!
|Purchase price of property (£)||New rates paid on the part of the property price within each tax band|
|0 – 125,000||0%|
|125,001 – 250,000||2%|
|250,001 – 925,000||5%|
|925,001 – 1,500,000||10%|
|1,500,001 and over||12%|
Our Open to Offers weekend, taking place on 6th & 7th December, will be the perfect opportunity to take advantage of these new rules. With thousands of vendors opening their doors and inviting offers from potential purchasers, now is the time to take a look at the properties included in this promotion and contact us to arrange your viewings.
With these stamp duty reforms and our Open to Offers event, affordability is the best it’s been all year!
– Less Stamp Duty for 98% of homebuyers
– Increased probability of accepted offers
– 1000s of properties included
– New Build and Help to Buy opportunities
– View multiple properties on 6th & & 7th Dec
– A great time to review your mortgage options
To take part in our Open to Offers event, contact a Countrywide Estate Agent today!