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Stamp Duty Update

Posted by
04 Dec 2014
It was announced this week that the "slab rate” of stamp duty is being abolished. This is one of the most historic and astonishing changes George Osborne talked about in his Autumn Statement. This has a huge effect on the public and will ultimately affect the legal profession.

The changes, which came into effect at midnight on 3rd December 2014, mean that the tax now applies progressively to properties in each band - similar to the way that income tax works. Buyers will now be taxed in chunks, a more gradual price compared to the "cliff edge” system which has now been scrapped.

So how much will really be saved?


Property Value

 

Old System

 

New System

 

Saving

 

£185,000

 

£1850

 

£1200

 

£650

 

£275,000

 

£8250

 

£3750

 

£4500

 

£510,000

 

£20,400

 

£15,500

 

£4900

 


Mr Osborne announced that this would save 98% of buyers' money, and an average of £4500 on the cost of an average home. Not only does this help us save in a time of economic recession, but it will also affect professions such as legal.

 
If the large majority of the general public can save money on buying a house, does this mean that more people will start buying? Will it become slightly easier for buyers to get their foot on the property ladder? And indeed work their way up it? For the majority of 2014, we saw a rush for residential conveyancers. The legal market became swamped with an influx of work for property lawyers and this may be repeated, and in fact increased, as we get into the New Year and into the summer months of 2015.

If you have considered becoming a locum now may be the time. There will be huge opportunity for locums to assist with this upcoming busy patch, as well as the whole host of benefits that comes along with being a locum - read more about that here.

If you are an existing residential conveyancing locum or are thinking about it, please contact me on 0113 243 9775 or e mail  michael.bailey@sellickpartnership.co.uk.
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