An overview of new stamp duty rates

A more sensible and fair way to charge Stamp duty was announced in the budget recently and it affects anyone buying a house for more than £125 000, but less than £937,500.

* This new ruling cuts stamp duty for 98% of people who pay it.

An Example

Buy a house for £185,000 under the old rules and stamp duty will be £1,850.

Under the new rules you would pay nothing on the first £125,000 and 2% on the balance of £60,000. A payment of £1,200. A saving of £650.

Buying a property of £510,000 would save £4,900

The average family UK home is £275,000. The reduced Stamp duty would be a saving of £4,500.

The new bands are

  • 0-£125,000. 0%
  • £125,001 – £250,000 2%
  • £250,001 – £925,000 5%
  • £925,001 – £1,500,000 10%
  • £1,500,001 and above 12%

*Source – HMRC 2014.

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