UK Stamp Duty changes – the winners and losers
Property commentators in the UK believe a majority of homes located in places such as the London commuter belt and some of its cheaper boroughs will be significant winners, following the changes to UK Stamp Duty Land Tax announced by the UK chancellor George Osborne in the 2014 Autumn Statement.
The changes mean stamp duty land tax (SDLT) on property transactions moves from a structure which levied a flat rate on the total sale price to a system charging progressively higher rates above certain thresholds. From 4 December 2014, SDLT for residential property is now charged at different rates depending on the portion of the purchase price that falls within each rate band.
Lower-priced markets in the southeast of England that are within commuting distance of London have the highest proportion of homes that will benefit, according to an analysis carried out for the Financial Times by Hometrack .
According to the Financial Times, research carried out by Hometrack showed properties priced at £275,000 to £350,000 will see the biggest cuts in stamp duty relative to their value. A swath of areas in outer London and the commuter belt have the highest proportion of homes in this price bracket. Newham, in east London, will benefit the most, with notable gains also occurring in areas such as Slough and Crawley.
The top end of the London market is set to suffer most from the stamp duty reform. Whilst stamp duty will cost less for all buyers of homes worth under £937,500, those buying homes at £1.1 million and above will now have to pay more in tax.
The new residential land or property SDLT rates and thresholds
Purchase price of property
|Rate of SDLT|
|Up to £125,000||Zero|
|Over £125,000 to £250,000||2%|
|Over £250,000 to £925,000||5%|
|Over £925,000 to £1.5 million||10%|
|Over £1.5 million||12%|
If a buyer exchanges contracts for the purchase of a house for £275,000 under the new rules, SDLT is now calculated as follows:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £1,250
Total SDLT payable = £3,750
Prior to the changes, the tax would have been payable at a flat rate of 3% in the above example, giving a tax bill of £8250. International and expat mortgage clients buying in the UK will also benefit from the changes. Guy Stephenson, a spokesman for international expatriate mortgage brokers Offshoreonline.org said, “With most expatriates buyers looking for UK homes and expat mortgages in the lower price ranges, all should welcome these changes which should bring about significant tax savings.”
« Back to News
- Green shoots appearing in UK property market, good news for expat house buyers
- UK Housing asking prices see smallest February increase on record
- Optimistic signs in expat buy to let market as mortgages rates fall and prices stabilise
- Expat UK property investing: Three positive signs, thinks broker
- Expat buy to let market still strong after two rate rises, says broker
- Recovery and strength in the UK housing market for 2022?
- Expat broker optimistic on post Covid UK buy to let housing market
- Broker warns over mortgage payment holidays
- Buying UK buy to let property after lockdown – expats will have the upper hand, thinks broker
- Expat lenders react to keep expat mortgage deal flowing during COVID-19 crisis
- Coronavirus impact on UK housing might be short lived, thinks expat mortgage broker
- Getting a mortgage whilst living abroad or getting a mortgage after you have moved abroad.
- What Happens when my UK Expat Mortgage Expires?
- Buy to let bargains abound, thanks to Brexit effect, thinks broker
- Expats increasingly vulnerable to new build deposit loss
- UK house hunters lead 6% growth in French non-resident property transactions
- Expat Buy to Let Mortgage Rates Cut Again
- Brexit fears give expats the edge, as UK buyers shun property
- Mortgage tax changes in Spain help buyers
- Expat mortgage broker predicts banks will not pass on full Base Rate rise to mortgage holders.
- Falling Expat Mortgage Interest Rates and Weak UK Housing Market Favour Expat Buyers
- UK property beats pensions, says UK official study
- Taxes for UK expat landlords might not be so hard after all
- Why a sinking pound need not scupper your French property dream
- Is it time to add UK university fees to your expat mortgage?
- Resurgent Spanish property market prompts new mortgage launches
- The new landscape for UK property investors – still good value
- New UK Buy To Let Rules Will Impact Expat Property Buyers – 2017
- UK rent rises continue to outstrip inflation, expat buy to let remains popular
- UK Stamp Duty hike not as harsh as first feared for expat property buyers
- Do I qualify for expat or international mortgages?
- Brexit need not harm the expat mortgage market, thinks Offshoreonline
- UK stamp duty changes, capital gains tax changes will impact expat buy to let investors, so start planning your checklist now
- Booming London property rents continue to attract expat buy to let landlords
- New UK Stamp Duty Won’t Dent Appeal of Buy To Let Mortgages For Non UK Residents
- QE spells heaven for overseas property buyers in Europe
- Thinking about buying a house in 2015? For expats, the signs are good
- UK property prices on the up in 2015 good news for expat buyers
- UK Stamp Duty changes – the winners and losers
- French expat euro mortgage rates fall again
- New house price index to make life easier for French euro mortgage house buyers
- New Spanish government figures point to gentle housing market recovery
- Buyers forced out of London by spiralling property prices have helped fuel a 10% annual rise in asking prices in the south-east – a rate that has now outstripped inflation in the capital.
- UK student loans – plan now for flexibility
- Landlords enjoying “record income from letting
- French euro mortgage rates fall again
- Mortgage lending up as UK house prices settle
- Brit buyers bounce back!
- Thinking of buying a house in France? Prices have just dropped 10%
- Fixed rate UK international mortgage demand to rise, as regulator confuses