New System on Residential Property Implemented By Government

Reforms to the system for calculating stamp duty have been introduced as part of the Government’s Autumn Statement.

The changes to stamp duty on residential property, which came into force at midnight on December 4th, will see rates only apply to the part of a property price which falls within a specific band.

Under the measures, zero per cent would be paid on the first £125,000 with two per cent being levied on any portion up to £250,000.

In addition, a rate of five per cent would be charged on portions up to £925,000, while 12 per cent would be paid on any value above that.

The Government has stated that the changes could leave to savings of £4,500 on the average-priced home in England and Wales.

Expert Opinion

These very immediate reforms to stamp duty will be welcomed by many people in England and Wales, from those looking to take their first steps onto the property ladder to those seeking to move further up it. <br/> <br/>"It is believed that up to 98 per cent of homebuyers could benefit from this. However, in areas of traditionally higher prices such as London, buyers may not be so welcoming of the change and its basis related to the proportion of the property price which falls within the relevant banding." Gillian Coverley - Partner