Autumn statement 2014 - SDLT changes

[KTF]

My house is currently sitting in the 250 - 275 dead zone. Not that I am planning to sell anytime soon but this is good news as the glass ceiling has been removed.

[RichB]

KTF said:

... this is good news as the glass ceiling has been removed.

I wanted one of those in my garage so I could see the cars from the living room above but my wife vetoed it.

[isleofthorns]

boxst said:

Anybody have an excel formula to work out the stamp duty?

Just about to buy a house and obviously can't use my standard formula now

create a name for a cell in a spreadsheet where you want to put the house price as "houseprice", then for the old tax rate enter the following formula

=IF(houseprice<160000,0,IF(AND(houseprice>159999,houseprice<250000),(houseprice*0.02),IF(AND(houseprice>249999,houseprice<500000),houseprice*0.03,IF(AND(houseprice<1000000,houseprice>499999),houseprice*0.04,"price too high"))))

for the new tax, enter the following

=IF(houseprice<125000,0,IF(AND(houseprice>125000,houseprice<250000),((houseprice-125000)*0.02),IF(houseprice=250000,2500,IF(AND(houseprice>250000,houseprice<925000),2500+((houseprice-250000)*0.05),"price too high"))))

I've only entered it for values up to 1m for the old rate up to £1m and for the new rate upto 925k -- of couse, that probably excludes most PH's!!

ps - haven't really tested, so could be an error or two!!

[isleofthorns]

below should be for all values.....


old tax

=IF(houseprice<160000,0,IF(AND(houseprice>159999,houseprice<250000),(houseprice*0.02),IF(AND(houseprice>249999,houseprice<500000),houseprice*0.03,IF(AND(houseprice<1000000,houseprice>499999),houseprice*0.04,IF(AND(houseprice>999999,houseprice<2000000),houseprice*0.05,IF(houseprice>1999999,houseprice*0.07,"no value"))))))

new tax

=IF(houseprice<125000,0,IF(AND(houseprice>125000,houseprice<250000),((houseprice-125000)*0.02),IF(houseprice=250000,2500,IF(AND(houseprice>250000,houseprice<925000),2500+((houseprice-250000)*0.05),IF(AND(houseprice>925000,houseprice<1500000),36250+((houseprice-925000)*0.1),IF(houseprice>1500000,93750+((houseprice-1500000)*0.125),"no value"))))))


rather worringly, a friend at Hamptons came back to me with different amounts for a couple of example prices.... have I got the sums wrong?

[RichB]

FFS it easier to use the HMRC calculator on their web site
http://www.hmrc.gov.uk/tools/sdlt/land-and-propert...

[isleofthorns]

correction..... top rate is 12%, not 12.5....

new tax formula

=IF(houseprice<125000,0,IF(AND(houseprice>125000,houseprice<250000),((houseprice-125000)*0.02),IF(houseprice=250000,2500,IF(AND(houseprice>250000,houseprice<925000),2500+((houseprice-250000)*0.05),IF(AND(houseprice>925000,houseprice<1500000),36250+((houseprice-925000)*0.1),IF(houseprice>1500000,93750+((houseprice-1500000)*0.12),"no value"))))))

[gregf40]

Just saw this on the BBC feed:

EMAIL:[e-mail]
Send your reaction John Alcock from Weston Super Mare emails: How exactly are the government calling the stamp duty a cut for 98% of people? They've DOUBLED the stamp duty cost for the AVERAGE home!! They haven't changed any of the thresholds either? I'm currently looking to buy a house for £175,000, now my stamp duty cost has gone from £1750 to £3500!! Thanks for that CUT in stamp duty!!

It scares me people like this are allowed to vote.

[RichB]

gregf40 said:

Just saw this on the BBC feed:

EMAIL:[e-mail]
Send your reaction John Alcock from Weston Super Mare emails: How exactly are the government calling the stamp duty a cut for 98% of people? They've DOUBLED the stamp duty cost for the AVERAGE home!! They haven't changed any of the thresholds either? I'm currently looking to buy a house for £175,000, now my stamp duty cost has gone from £1750 to £3500!! Thanks for that CUT in stamp duty!!

It scares me people like this are allowed to vote.

Mind you it was cruel of the BBC to publish it on their website, imagine the ribbing the guy will get when his mates tell him what a goon he is. How embarrassing it is when someone sounds off and their so wrong

[pauldavies85]

People to benefit, at marginal values, can save 4.5k overnight! Eg. 260k 501k.

IMO gonna boast house prices a fair bit. This coupled with pensioners having their cash back from the rubbish ovt pension schemes, who no doubt will be buying more buy to let's!
I think well see significant house increases next year IMO!

[pauldavies85]

People to benefit, at marginal values, can save 4.5k overnight! Eg. 260k 501k.

IMO gonna boast house prices a fair bit. This coupled with pensioners having their cash back from the rubbish ovt pension schemes, who no doubt will be buying more buy to let's!
I think well see significant house increases next year IMO!

[Moulder]

Surely anything that was worth 255-260k but put up for sale at 249,995 to be inside the Stamp Duty threshold will now be on the market for 255-260k meaning the actual cost is greater. I guess it could be argued that it reduces an up front cost but it will take it outside of some peoples mortgage multiple.

The last flat where I live just sold for 250k, I would expect the next identical one to sell for 260k plus just because of this change.

[Cheib]

No fking idea what this means for me...current property potentially benefits from removal of glass ceiling but then more expensive properties are now going to be cheaper to reflect higher stamp duty! Also means when we move next year that we and I suppose everyone else will be keaner to buy land to build on as you will be saving a st load in stamp duty.

[Easty-5]

We concluded our missives a month or so ago. Our completion date isn't until 3rd April 2015. Under the new scheme, and more importantly, being in Scotland, do I look set to benefit (Circa £4k saving under new scheme) or will I have to pay the original 3%? Also, how does the Scottish system which comes in to effect from 01/04/2015 differ from the English (Currently UK wide until 01/04/15) system?

[KTF]

You pay whatever is in force on the day that you complete.