Under the new rules, no tax will be paid on the first £125,000 of a property. This is followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.
The reform is already live, replacing the old ‘price banding’ system.
Having fallen sharply during the economic crisis, house prices grew at 12.1% in the year to September having been particularly driven by rises in London. Property transactions have almost doubled their 2009 low. This radical reform is intended to reduce distortions to the housing market and improve the fairness of the tax system.
The Treasury said someone buying a property at the average family home price of £275,000 would save £4,500, while a £2.1m purchase would carry £18,750 more stamp duty compared with the old system. It is estimated that 98% people benefit by paying less Stamp Duty.
Jason Dyer of JTM Homes commented: “This is good news for property owners in North London. Increased house prices mean that vendors can expect to achieve a good price. Buying is now more affordable for those looking for properties thanks to the Autumn Statement. It’s a powerful combination leading to more activity within the property market.”
Are you thinking of moving soon? Make the most of the new changes by contacting JTM Homes.