Chancellor overhauls stamp duty tax - use Trinity's calculator
Chancellor George Osborne has made substantial changes to the stamp duty tax during his final Autumn Statement before the next general election.
Stamp duty will now be applied as a progressive tax so that buyers will pay no tax up to the first £125,000, 2 per cent on the portion up to £250,000, 5 per cent up to £925,000, 10 per cent up to £1.5 million and 12 per cent on the next portion above £1.5 million.
A reported 98 per cent of buyers will pay less tax when purchasing a property.
Paul Smee, director general at the Council of Mortgage Lenders (CML), said: "This fundamental reform has been a long time coming, but better late than never. Although there are losers as well as winners, the vast majority of mortgaged transactions will benefit from lower tax as a result of this move."
CML data suggests that, among mortgaged transactions over the past year, 21.6% were for less than £125,000, 47.9% for £125,001-£250,000, 29% for £250,001-£925,000, 1.1% for £925,001-£1.5 million, and 0.4% for over £1.5 million. The proportion of mortgaged transactions that would pay more tax under the new system is around 1.5%.
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