Have a question?
033 3772 0409

Housing Solicitors

New Stamp Duty rates apply from today (4 December 2014)

Date: 04/12/2014
Duncan Lewis, Housing Solicitors, New Stamp Duty rates apply from today

The Chancellor’s changes to Stamp Duty are effective from today (04/12/14), meaning homebuyers whose homes are below the £1 million threshold will save money.

George Osborne announced his reforms to Stamp Duty in his Autumn Statement on Wednesday – and Labour immediately supported the changes.

Those who buy homes over the value of £937,000 will have to pay more in Stamp Duty, with properties sold for more than £1.5m having Stamp Duty levied at the new rate of 12% rather than 7%. London homes and property in some areas of the southeast are expected to be affected mainly by the increase in Stamp Duty, which “smoothes” out the banding in Stamp Duty which has lead to sudden hikes in the rate.

From midnight on Wednesday – just hours after the Chancellor announced the reforms – an estimated 98% of property sales benefitted from the new Stamp Duty banding.

Homebuyers who have exchanged contracts but not completed before the reforms came in will be able to choose whether they want to use the new Stamp Duty system or the old system of Stamp Duty.

In the old “slab” system, Stamp Duty was charged on the total value of the property – properties between £125,000 and £250,000 had Stamp Duty levied at 1%. However, at £250,000 to £500,000 Stamp Duty jumped to 3%, and then to 4% for properties over £400,000, etc.

Homes charged at the lowest rate of Stamp Duty (property valued at £125,000 to £250,000) will now pay £1,200 – a decrease from £1,850.

Homes valued below £125,000 will continue not to have Stamp Duty levied on them.

Most homebuyers will see a reduction in Stamp Duty, however, unless the property value exceeds £1m – previously a house worth £1.5m would have £75,000 in Stamp Duty levied on it. Under the new system Stamp Duty would be £93,750.

A house worth £5m would accrue £513,750 in Stamp Duty – an increase from £350,000.

The Chancellor said that his Autumn Statement focused on people’s aspiration “to work, save and own a home”.

“The system I introduce today replaces a badly designed system that has distorted our housing market for decades,” Mr Osborne said during his Autum Statement.

“It reduces the stamp taxes for 98 per cent of people who pay them in this country.

“It increases the taxes on the most expensive 2 per cent of homes – but only asks people to pay that tax when they buy the house and they have the money.

“And it does not involve a revaluation of hundreds of thousands of homes in this country.”

Duncan Lewis Housing Solicitors

Duncan Lewis is a leading firm of housing solicitors with six offices across London and the southeast.

Duncan Lewis offers competitively priced conveyancing services to homebuyers – and as a leading provider of Legal Aid services, Duncan Lewis can also advise homeowners on issues such as debt management and mortgage repossession.

For expert legal advice on housing law, call Duncan Lewis housing solicitors on 020 7923 4020.


For all Housing related matter contact us now.Contact Us

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is 143-149 Fenchurch St, London, EC3M 6BL. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.