There were many announcements in this week’s Autumn Statement. One of the biggest announcements were changes to the stamp duty thresholds. This could make a big difference to the amount you have to find upfront when buying a property here in Surrey and Hampshire.
But just how much could you save? Here are a few calculations for you.
This means that if the property you bought was £126,000, you’d only pay 2% in tax on the £1,000 above the £125,000 threshold.
It could mean you save a huge amount of cash, and considering that it’s such a big cost, hopefully it will ease the purse strings a bit.
In a recent survey by the Yorkshire Building Society A survey found that 18% of first-time buyers see paying stamp duty as the second-biggest cost challenge associated with buying a home, second only to raising a deposit (at 51%), and this figure rises to 28% for non first-timers, 31% of whom said the deposit was the biggest issue.
How much could you save?
Figures from the Treasury show that, if you bought a home worth £185,000, you would now pay £1,200 in stamp duty – or 2% tax on the £60,000 portion above the £125,000 threshold.
Previously, you’d have paid 1% tax on the full amount, resulting in a payment of £1,850, so you’ll save £650 overall.
Yes I know its complicated – or mind boggling, but that’s what we’re here for.
The savings are even more marked with higher-priced properties. The average family home of £275,000 will now have serious savings..
Prior to the change this week you would have paid £8,250, but from this week its just £3,759! A property bought at £510,000 will incur a tax charge of £15,500 down from £20,400, a saving of £3162.
So as you can see, big savings are to be made in buying a property right now.
[bctt tweet=”Big savings are to be made in buying a property right now”]
The Government estimates that 98% of future homeowners will benefit – a figure backed up by the Council of Mortgage Lenders, which found that only 1.5% of homeowners would be negatively affected – so it’s good news for pretty much everyone concerned.
Need help or advice contact us for friendly down to earth advice.
