Stamp Duty Reforms in 2015

According to HMRC stamp duty will be cut for 98% of people who pay it. The question is, what effect will this have on the local property market here in Salisbury and on the property market as a whole moving into 2015.

The average house price in Salisbury is currently £359,428 which under the old system would have meant the purchaser paying £10,782 in stamp duty. Under the new reform this would be reduced to £7,971 a saving of 26%.

This is sure to add a boost to the local property market for 2015 with buyers facing lower charges. However, some believe it will cause the price of houses to go up as vendors are no longer restricted by the old stamp duty bands and can set their houses at the price they think they are worth.

In 2014 there has been a slight in-balance between the amount of buyers to the number of properties available for sale. This could well be corrected following these stamp duty changes and could cause a flurry of new instructions to hit the market in January.

The calculations for the new stamp duty rates can be confusing. Fox Grant, based just outside Salisury will be delighted to offer a free consultation to anyone, buyer or seller on how the changes will affect them. For more information contact Fox Grant on 01722 782 727.

 

Stamp Duty 2015 Guide

Example Property Old Tax Paid New Tax paid % Change
£125,000 ? No Stamp Duty £0 £0 0%
£185,000 £1,850 £1,200 0.7%
£275,000 £8,250 £3,750 1.4%
£510,000 £20,400 £15,500 3.0%
£937,500 £37,500 £37,500 4.0%
£1.2m £60,000 £63,750 5.9
£2.1m £147,000 £165,750 7.9%

Nicola Shepherd, Head of Marketing, PR & Digital

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