Stamp duty reforms from midnight tonight.

Leon_W

The new rates will be: nothing on the first £125,000, 2% on the share above that up to £250,000; then 5% on the next slice up to £925,000; then 10% on the next slice up to £1.5m; then 12% on everything above that.


IE: If you buy a house at £300,000 then it will be 2% on £125k to £250k PLUS 5% on the remaining £50k


Seems sensible as it should remove bottlenecks in house prices at the old rate change levels.

MercilessKiller

According to the BBC:
"Although the new stamp duty regime comes into force at midnight, but Mr Osborne said people in the process of purchasing would not be affected."

I have no idea what that means - I haven't exchanged contracts yet (will be doing so later this week!!!). Do I get the new rate? I hope so! Will save me £3k!!!

Leon_W

You'll get the new rates !


People who have exchanged have the option to either use the old system or the new.

MercilessKiller

Leon_W wrote: »

You'll get the new rates !


People who have exchanged have the option to either use the old system or the new.

Ahh so it's more about protecting people that have exchanged at the higher rate to avoid paying more by the sounds of it..?

Wohoo! £3k bonus!! Will break out the champers

Baby_Angel

Leon_W wrote: »

You'll get the new rates !


People who have exchanged have the option to either use the old system or the new.

Thanks. A friend of ours is in the process of buying, this would mean a saving of £3800 for him. He would be thrilled.

Leon_W

Yes.


If you have exchanged contracts but NOT completed you can use whichever system suits best.

superdudeo

Good news if you've already bought. This will drive prices up I'm sure and without benefit for me buying at 250k sigh.

MercilessKiller

superdudeo wrote: »

Good news if you've already bought. This will drive prices up I'm sure and without benefit for me buying at 250k sigh.

Have you already found a place at 250k? If so, like you said, if it drives prices up it will benefit you!

PasturesNew

It makes no difference to the house I bought. Under £250k nothing has changed.

Er... or did it. I've no idea what the rates were..... so not sure if anything has changed. But I don't think it did.

Ah, looks like it used to be 1% on the total price, now it's 2% between £125 and £250.

I need a lie down now.

emcap

MercilessKiller wrote: »

According to the BBC:
"Although the new stamp duty regime comes into force at midnight, but Mr Osborne said people in the process of purchasing would not be affected."

I have no idea what that means - I haven't exchanged contracts yet (will be doing so later this week!!!). Do I get the new rate? I hope so! Will save me £3k!!!

Those who have already exchanged can choose old vs new; those who haven't will default to new.

Leon_W

Here's the link to the new rates....


https://www.gov.uk/government/publications/rates-and-allowances-stamp-duty-land-tax/rates-and-allowances-stamp-duty-land-tax