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Sheffield Estate Agents: Stamp Duty Reform is here! Following our Stamp Duty blog in 2012, https://www.sheffieldresidential.com/blog/?p=97, the Chancellor has today announced the abolition of the slab structure of the stamp duty system.
Currently, buyers pay 1% stamp duty on properties worth more than £125,000 and then 3% on the full value of a property worth over £250,000 and 4% on the whole value on properties purchased for over £500,000 (even more when the value is £1m or more).
From midnight, a new and much fairer system will come into play:
No stamp duty will be payable up to the first £125,000 for everyone!
2% will then be payable on the portion in the £125,000 to £250,000 bracket
Followed by 5% on the portion up to £925,000
(10% up to £1.5m and 12%for anything over that)
The Chancellor said 98% of buyers will benefit and will pay less under the new structure in a tax cut worth £800m a year.
As an example of the old stamp duty system versus the new.
Say a property is purchased at £310,000. Under the current system, the buyer would have paid £9,300.
From midnight, under the new system, this will be approx £5500, giving the buyer a saving of £3,800!