You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.
The SDLT rate depends on:
- The purchase price of the property
- Whether the property is residential
Mr Osborne spelled out the new stamp duty rates.
- No tax on the first £125,000 paid
- 2% on the portion up to £250,000
- 5% up to £925,000
- 10% up to £1.5 million
- 12% on everything above that.
Mr Osbourne said:”As a result stamp duty will be cut for the 98% of homebuyers who pay it.” Moving to a more sensible system that works in much the same way as income tax means that many buyers will from midnight tonight, suddenly have some more cash in their pocket. For example someone purchasing at £550,000 will now pay £17,500 rather than £22,000.”