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<\/p>\nYesterday, Chancellor George Osborne gave his Autumn Statement to Parliament; the final one before the next General Election. The big bonus from a\u00a0consumer’s perspective was the announced changes to stamp duty which came into effect today (from midnight).<\/p>\n
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Until now, stamp duty has always been a major issue and expense for all home buyers across the UK. The way it was structured meant that many were penalised due to the trigger points set.<\/p>\n
Previous stamp duty bands<\/a><\/strong> were as follows:<\/p>\n If you bought a property for \u00a3250,000 up until 3 December you would have paid \u00a32,500 in stamp duty. However if that property cost you just a penny more, your stamp duty would have more than trebled to \u00a37,500.03.<\/p>\n Now stamp duty works much the same way as income tax, in that you’re only taxed on portions between the bands. The new structure is:<\/p>\n So taking an example, if someone bought property for \u00a3260,000 with the new regulations in force, they’d pay \u00a33,000 in stamp duty. This would be broken down as:<\/p>\n \u00a30.00 on the first \u00a3125,000 Under the old system, there would have been a flat rate of 3% applied to the purchase price of \u00a3260,000 meaning stamp duty of \u00a37,800. So in this example the home buyer is some \u00a34,800 better off – a saving of almost 62%.\u00a0Effectively the stamp duty rate comes out at\u00a01.15% based on the property price<\/p>\n However, the changes don’t benefit everyone. Properties costing the most are now hit with a much higher stamp duty charge.<\/p>\n For instance a property costing \u00a32,500,000 would have previously resulted in stamp duty of \u00a3175,000 (7% of the property price). Under the new regulations the much higher rate at the top of the scale will see that stamp duty rise to \u00a3213,750 – effectively 8.55% of the property price.<\/p>\n With the average UK house price at around \u00a3186,000 the majority of home buyers stand to benefit from the changes in stamp duty. At Mr Lender<\/a><\/strong> we wholeheartedly approve of measures such as these; stamp duty has always been considered a ‘bad’ tax so the new rates finally ease the burden on those buying a home.<\/p>\n Mr Lender<\/a> is a leading UK-based short-term credit provider. \u00a0We provide\u00a0payday loans<\/a> and short-term loans<\/a>\u00a0of up to \u00a31,000, repayable up to six months.<\/strong><\/p>\n\n
What the changes mean<\/strong><\/h3>\n
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\n\u00a32,500.00 between \u00a3125,000.01 and \u00a3250,000
\n\u00a3500.00 between \u00a3250,000.01 and \u00a3260,000.<\/p>\n