Stamp Duty Land Tax (SDLT) is to be changed at midnight after today’s Autumn Statement by Chancellor George Osborne.
The Chancellor announced that he would be completely reforming what he described as a “badly designed tax on aspiration”. He has altered the structure, by which home buyers paid SDLT on the entire purchase price of the property. Instead, he has replaced it with a “progressive” structure which, he insisted, would benefit 98% of home purchasers.
Under the new reforms:
- No SDLT payable at all on properties up to £125,000
- The first £125,000 on properties to be free of SDLT
- Then payable at 2% payable on the portion up to £250,000
- Payable at 5% on the portion up to £925,000
- Payable at 10% on the portion up to £1.5m
- Then payable at 12% on the portion over that amount.
Osborne expects the SDLT reforms to cost if a total of £4.4bn in the next six years. However, where purchasers bought at exactly the previous thresholds of £250,000 and £500,000, there will be no difference in the amounts payable.
The reform to SDLT was given a half-hearted welcome by the shadow chancellor, Ed Balls, whose own party wants to introduce an annual Mansion Tax. He said: “[The] measures aren’t enough – why not have an annual charge on the highest properties and fund a £2.5bn injection into the health services”.
If you have any questions on how SDLT will impact you and your Homesale, please contact us on 01244 313900 we would be delighted to discuss this with you.
Alternatively pop into our office. Our experienced, friendly team will be delighted to help you with any of your questions in relation to stamp duty land tax changes or any other property related question.