30 Dec Stamp Duty – a level playing field in some respects?
Stamp duty is no longer a slab system and is widely welcomed by buyers of properties below £937,500 who will now pay less stamp duty than under the previous structure.
Of course this will more than likely create more demand for properties under £1 million as this will mean buyers and estate agents will no longer be concerned about the pricing properties just under the old thresholds of £250,000 and £500,000.
Therefore properties around this price range may be marketed at a higher price.
So another point to be aware of when getting down to some tough negotiation with agents and buyers.
But for properties over £1.5m, buyers will be paying 25% more than previously and buyers of £2m properties will be paying over 50% more. Therefore sellers of properties above £1.5m will be under pressure to reduce their asking prices to attract buyers who have to factor in this substantial increase to their costs.
See a chart of increases and decreases to stamp duty charges.
| OREGAN WALKER UK STAMP DUTY CALCULATOR | |||
| Purchase price of property | Rate of SDLT (percentage of portion of purchase price) | ||
| £0 – £125,000 | 0% | ||
| £125,001 – £250,000 | 2% | ||
| £250,001 – £925,000 | 5% | ||
| £925,001 – £1.5 million | 10% | ||
| Over £1.5 million | 12% | ||
| Purchase Price | Stamp Duty Payable | Old Stamp Duty Cost | Saving |
| £100,000.00 | £0.00 | £0.00 | £0.00 |
| £150,000.00 | £500.00 | £1,500.00 | £1,000.00 |
| £200,000.00 | £1,500.00 | £2,000.00 | £500.00 |
| £250,000.00 | £2,500.00 | £2,500.00 | £0.00 |
| £300,000.00 | £5,000.00 | £9,000.00 | £4,000.00 |
| £350,000.00 | £7,500.00 | £10,500.00 | £3,000.00 |
| £400,000.00 | £10,000.00 | £12,000.00 | £2,000.00 |
| £450,000.00 | £12,500.00 | £13,500.00 | £1,000.00 |
| £500,000.00 | £15,000.00 | £15,000.00 | £0.00 |
| £600,000.00 | £20,000.00 | £24,000.00 | £4,000.00 |
| £700,000.00 | £25,000.00 | £28,000.00 | £3,000.00 |
| £800,000.00 | £30,000.00 | £32,000.00 | £2,000.00 |
| £900,000.00 | £35,000.00 | £36,000.00 | £1,000.00 |
| £1,000,000.00 | £43,750.00 | £40,000.00 | -£3,750.00 |
| £1,100,000.00 | £53,750.00 | £55,000.00 | £1,250.00 |
| £1,200,000.00 | £63,750.00 | £60,000.00 | -£3,750.00 |
| £1,300,000.00 | £73,750.00 | £65,000.00 | -£8,750.00 |
| £1,400,000.00 | £83,750.00 | £70,000.00 | -£13,750.00 |
| £1,500,000.00 | £93,750.00 | £75,000.00 | -£18,750.00 |
| £1,750,000.00 | £123,750.00 | £87,500.00 | -£36,250.00 |
| £2,000,000.00 | £153,750.00 | £100,000.00 | -£53,750.00 |
| £2,250,000.00 | £183,750.00 | £157,500.00 | -£26,250.00 |
| £2,500,000.00 | £213,750.00 | £175,000.00 | -£38,750.00 |
| £2,750,000.00 | £243,750.00 | £192,500.00 | -£51,250.00 |
| £3,000,000.00 | £273,750.00 | £210,000.00 | -£63,750.00 |
| £3,500,000.00 | £333,750.00 | £245,000.00 | -£88,750.00 |
| £4,000,000.00 | £393,750.00 | £280,000.00 | -£113,750.00 |
| £4,500,000.00 | £453,750.00 | £315,000.00 | -£138,750.00 |
| £5,000,000.00 | £513,750.00 | £350,000.00 | -£163,750.00 |
| £6,000,000.00 | £633,750.00 | £420,000.00 | -£213,750.00 |
| £7,000,000.00 | £753,750.00 | £490,000.00 | -£263,750.00 |
| £8,000,000.00 | £873,750.00 | £560,000.00 | -£313,750.00 |
| £9,000,000.00 | £993,750.00 | £630,000.00 | -£363,750.00 |
| £10,000,000.00 | £1,113,750.00 | £700,000.00 | -£413,750.00 |
| £15,000,000.00 | £1,713,750.00 | £1,050,000.00 | -£663,750.00 |
| £20,000,000.00 | £2,313,750.00 | £1,400,000.00 | -£913,750.00 |