It was a big day in the property world on Wednesday when the Chancellor of the Exchequer, George Osborne completely revised the Stamp Duty Tax rates – paving the way for big savings when it comes to purchasing your next home!
The Old way
Under the old system, stamp duty was a percentage of the entire property price. Moreover, there were sharp increases at certain trigger points.
For example: Someone buying a home for £250,000 would have payed £2,500 (1%) in stamp duty – but if the price was just £1 more, they would have had to pay a whopping £5,000 extra due to paying 3% on the whole purchase price.
The New Way
The new system of stamp duty (which came into force from midnight on 3rd December) will only apply to the amount of the purchase price that falls within the particular duty band – in other words, just like income tax.
For example: Someone buying a house for £200,000 will pay nothing on the first £125,000, and then 2% of the next £75,000, giving them a bill of £1,500. Previously this bill would have been £2,000.
So how does our current stock of available Damson properties fare?
Glad you asked – we’ve had our calculators out… 🙂
| Old Rate | New Rate | You Save |
| Plot 1, 2 & 3 @ Birchy Greens (£675,000) | ||
| £27,000 | £23,750 | £3,250 |
| Plot 4 @ Birchy Greens (£525,000) | ||
| £21,000 | £16,250 | £4,750 |
| Plots 2, 6, 7, 8, 9 @ Blakesley Views (£230,000) | ||
| £2,300 | £2,100 | £200 |
Combine all this will another Government initiative, Help to Buy and our very own 100% Part Exchange Service – this really is great time to buy your very first Damson Home! 🙂
Here’s a table of the New Stamp Duty Rates
| Purchase Price (£) | Rate (%) |
|---|---|
| Up to 125,000 | 0 |
| 125,001 – 250,000 | 2 |
| 250,001 – 925,000 | 5 |
| 925,001 – 1,500,000 | 10 |
| 1,500,000 + | 12 |
It’s interesting to note that although the percentage rates appear higher in some cases, the overall charge is lower for 98% of homebuyers.