Whether you are selling your house through an online estate agent or through the traditional high street estate agency, Chancellor George Osborne’s new Stamp Duty Land Tax could have a big effect on the price of your house. The Chancellor has delivered a masterstroke in the build up to the election by helping 98% of buyers in the UK whilst also making the Mansion Tax redundant. Anybody buying a house under the price of £937,500 will pay less Stamp Duty upon purchase whilst those paying the big money will pick up the bill.
The new Stamp Duty Land Tax works the same as income tax, with the higher tax rates only being applied to the relevant portion of the purchase price:
Relevant part of the Purchase Price £
So much of the price as does not exceed £125,000
So much as exceeds £125,000 but does not exceed £250,000
So much as exceeds £250,000 but does not exceed £925,000
So much as exceeds £925,000 but does not exceed £1,500,000
So much as exceeds £1,500,000
We’ve asked our Director Will Clark to comment on this news and what it means for online estate agents and their customers:
“We are delighted to see the Chancellor’s decision to reform an antiquated Stamp Duty system. It is fantastic news for 98% of buyers with their tax burden being reduced at the point of purchase. It is a much fairer system and one that can only help to encourage home ownership. We foresee a slight uplift in prices below the £937,500 mark which is great news for all those selling their house.”
At SellMyHome.co.uk we are delighted to see a reform in Stamp Duty that helps 98% of those looking to buy but are very aware that those who make the biggest saving using our service will be hit pretty hard by the reformed Stamp Duty Land Tax:
“Buyers and sellers in London and the South are likely to be hugely effected by this change. We believe that it will have a dramatic impact on the valuation and sale prices of properties in London and the Home Counties. What is for sure though is that vendors in the £937,500 plus bracket, who are moving on to buy, will be looking for new ways to save transaction costs. Surely, the high street estate agency commission fees will be the cost to go - we believe that online estate agents are going to benefit hugely from the hike in stamp duty at this level of the market.”
HMRC have kindly put together a comparison calculator that will show exactly what you would have paid and what you will now pay depending on your house price: Stamp Duty Calculator
If you would like to talk to one of the team about Stamp Duty and how it will affect you please give your friendly online estate agent team a call on 0203 44 12345.