King's Lynn Estate Agents Welcome Changes to Stamp Duty
8:36am 4th December 2014
Estate Agents in King’s Lynn have welcomed changes to the way Stamp Duty is worked out.
The Chancellor George Osborne announced in his Autumn Statement that the government was scrapping the "slab rate" of the tax.
It came into force at midnight last night.
So what’s the difference?
Under the old rules if you bought a house for £124,999 house, you would pay no tax at all. But if you bought a £125,001 house then you would pay 1% - that’s £1250 to the government on top.
It was the same for more expensive homes. If you bought a house for £249,999, you would pay £2499 in tax. If you bought a house for £250,001 house then you would pay 3% on top in tax – that’s £7500.
Under the new system you only pay tax on the bit of the price that falls over the tax threshold.
So buy a house for £125,000 and pay no tax at all. Buy a house for £126,000, and you pay no tax on the first £125,000, and 1% on rest – that’s just £10.
Mel Britton is from Brittons Estate Agents in King's Lynn:
“It all adds up and it’s a good proportion of money. It could pay for a holiday, it could pay for removals, that’s a massive thing for some people and this saving could cover that cost.”