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Autumn windfall for home buyers

A massive 98% of home buyers will benefit from the shakeup which is aimed at improving the way the housing market operates by taking away the perils of the Stamp Duty “cliff” and making it operate more like income tax.
Under the new scheme, no stamp duty is payable on homes up to £125,000 and after that duty is only paid on the portion of the price over £125,000, but at an increased percentage. For example, a buyer purchasing for £130,000 would only pay £100 rather than £1,300 previously. This will give a much needed boost to the recently ailing property market.
The overhaul also sets out a new banding system which means that the way tax is applied is much fairer. The buyer of an average family home priced at £275,000 would save £4,500 while a buyer for a £2m house would need to find around £50,000 more in tax.
New banding as of 04/12/14
Homes up to £125,000 – no stamp duty payableValue £125,000 – £250,000        2% Value £250,001 – £925,000        5%Value £925,001 – £1.5m            10%Value above £1.5m                   12%
Transitional rules will apply to allow buyers who have already exchanged contracts but have not completed before 4 December to choose whether to pay stamp duty under the new band or the existing one. The new changes will take effect from 4 December and if you have any queries about how the new rules may affect you please contact Ed Williams at Atherton Godfrey on 01302 320621.

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