Stamp Duty changes effective from midnight tonight

With effect from midnight tonight the existing stamp duty land tax regime will change. The rules can be found at: –

The main change is that the old method of calculation was to say that when the property exceeded a band limited the whole of the purchase price was charged to stamp duty not just the bit above the band. Now only the element of the purchase price in that bracket will be charged to that rate.

The new rules start on 4 December 2014 – but if you’ve already exchanged on a property you’ll have a choice about whether to use the old or new rules.

Completing your sale on and after 4 December 2014

If you exchange and complete (or in Scotland, settle) your home purchase on or after 4 December you will pay stamp duty under the new rules.

Completed your sale before the 4 December 2014

If you completed on the purchase of your property on or before 3 December 2014, but have not yet filed your stamp duty return, you still have to pay stamp duty under the old rules.

Exchanged on your contract before 4 December 2014

If you exchanged contracts (or in Scotland, concluded missives) before 4 December but complete on or after that date you’ll be able to choose whether the old or new rules apply.

HM Teasury says: “In the majority of cases you will pay less tax under the new regime”

ENDS
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This is not legal advice; it is intended to provide information of general interest about current legal issues.

 

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