From 4th December 2014 the rules on Stamp Duty were changed. Here are the key facts:
This applies to all those buying a home in the UK for over £125,000.
Under the old rules there was one rate of tax, applicable to the whole amount. Now you will pay different rates, in bands, rather like income tax. For example, if you had previously bought a house for £185,000 you would have paid 1% tax on the full amount (a total of £1850). Under the new rules you pay nothing on the first £125,000 and 2% on the remaining £60,000 (a total of £1200).
You can see the bands here, in this table;
Although the rules start on 4th December, if you’ve already exchanged you’ll be able to choose whether to use the old or new rules.
HMRC has an online calculator to help you work out how much stamp duty you will have to pay.
You can download this guidance note from the Government, here.
Wards Solicitors Conveyancing Calculator has been updated to reflect these changes, so you can get a clearer idea of the costs related to moving home.