Autumn Statement: complete overhaul of stamp duty
Stamp duty will face an immediate overhaul following the Chancellor’s Autumn Statement on 3 December. From now on, each tax band will be used only on the particular portion of the selling price of the property to which it applies – similar to the way income tax is calculated.
Previously, a set tax band was charged against the whole value of a property meaning substantial hikes in tax between properties costing just a few pounds more.
While critics of the property tax have long argued that the former system was outdated, the sweeping changes will mean that senior doctors buying high-end properties may face higher tax charges. Houses valued above £937,500 will now incur more stamp duty than before. Most properties valued at less than this threshold will pay less.
Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2 per cent on the portion up to £250,000, 5 per cent on the portion between £250,000 and £925,000, 10 per cent up to £1.5 million and 12 per cent above this figure.