AFTER the surprise announcement that Stamp Duty on home buying had been altered, we at Besley Hill Town & Country Homes decided to publish online within our marketing statements for each property the actual amount of tax that would be saved by the buying public assuming that the asking price was paid in each case.

The Government has stated that savings will now apply to some 98 per cent of the marketplace.

For many years the change from having to go from one per cent to three per cent of the purchase price in stamp duty tax, particularly in the sensitive price band above £250,000 to £275,000, had left a lump in the throat for many a buyer and in the opposite way sellers alike.

When the tax change was introduced back in 1997, £250,000 could buy you a smallholding with acreage in many parts of the country but with particularly large price increases noted in the late 1990s and in the early part of the last decade, many more homes became involved in the tax increase and a cliff edge arrangement.

Well, as we begin the 2015 housing market season, there is no doubt that the tax change will have a positive effect for almost all buyers.

Hopefully now the housing market will be far more free to determine what a property is truly worth right across the pricing spectrum as the months roll on.

That being said, calculating the new tax arrangements does require a little more detailed knowledge.

The stamp duty costs works as follows: £0 – £125,000 = zero per cent of the purchase price to pay, then from £125,001 – £250,000 = two per cent to pay, from £250,001 - £925,001 = five per cent to pay, from £925,001 - £1, 500,000 = 10 per cent to pay and finally, over £1,500,000 = 12 per cent to pay.

So, for example, buying a house at £260,000 used to cost £7,800, i.e. three per cent of the purchase price, and now only costs two per cent of the difference between £250,000 and £125,000 = £2500,00 plus five per cent of the difference between £250,000 and £260,000 = £500,000, making a grand total of £3,000 making a saving of £4,800.

If you are looking for an up-to-date valuation on your home, please book by calling 01453 764912.