Stamp Duty reforms announced in Chancellor’s Autumn Statement

Chancellor George Osborne’s Autumn Statement included significant changes to Stamp Duty for residential properties. These revisions came into effect from midnight yesterday.

For a simple explanation of the changes, please visit https://www.gov.uk/stamp-duty-landtax-rates which details the revised rates. There is also a handy on-line calculator to see what will now be payable and how it is calculated, in addition to a comparison tool showing what would have been paid previously.

In a snapshot, Stamp Duty will now be charged at different rates depending on the portion of the purchase price that falls within each rate band, rather than a flat rate above certain values.

The really good news is that for anyone buying below £937,500 OR between £1m and £1.1m, the tax will be less than previously charged.

It is worth noting that if you have yet to complete a purchase but have already exchanged, on completion you will be able to choose between the previous or the new arrangement, so be careful to check to ensure you pay the lowest amount. We are happy to confirm any calculations.

This all bodes well for continued property investment in London.

If you have any queries on this or any other tax matters please feel free to contact our Accounts department.

By Vidhur Mehra, Finance Director