Major changes announced in the Autumn Statement have cut stamp duty for the majority of homebuyers.
The new rules – which came into force today (4 December) – replace the old system where stamp duty was calculated as a percentage of the whole property price, rising at particular price levels.
Now you will only pay the rate of tax on the part of the property price within each tax band.
No tax will be paid on the first £125,000 of a property, you’ll pay 2% on the amount up to £250,000, 5% on the amount between £250,000 and £925,000, 10% on the next portion up to £1.5 million and 12% on everything above that.
For example, under the old system, if you bought a house for £185,000, you would have paid 1% on the full amount - £1,850. The changes mean that you’ll pay nothing on the first £125,000 and 2% on the remaining £60,000 – that works out at £1,200, a saving of £650.
The new rules begin today, but if you’ve already exchanged and are completing on or after 4 December, you can choose whether to use the old or new system.
Find more details here.