Panic set into the property industry last night when the Government implemented new stamp duty regulations on UK property, the tax on home purchases.  The new rules saw buyers trying to rush through contract exchanges before midnight in order to avoid increases in some property price brackets.

Here is a summary of the old rates and the new ones which apply from today:

The old system:

  • 0% tax on properties up to – £125,000
  • 1% tax on properties from – £125,001 to £250,000
  • 3% tax on values between – £250,001 and £500,000
  • 4% tax on properties between – £500,001 and £1m
  • 5% tax on properties between – £1m and £2m
  • 7% tax on properties – above £2m

 The new system:

  • No tax payable at all on properties up to £125,000
  • The first £125,000 on all other properties will also be tax free
  • After the first £125,000 – 2% payable on the portion up to £250,000
  • After £250,000 tax payable at 5% on the portion up to £925,000
  • After £925,000 tax payable at 10% on the portion up to £1.5m
  • Then payable at 12% on the portion over that amount.

 

The official HMRC calculator will help you to automatically calculate the tax owed

http://www.hmrc.gov.uk/tools/sdlt/land-and-property.html

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Dawn Blake

Dawn Blake

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