Leading Property Portfolio Management Consultancy Introduce New Stamp Duty Calculator
Hot off the heels of announcing the creation of a new mortgage calculator tool, the innovative Surrenden Invest team have revealed that a new stamp duty calculator is also in the pipeline. The calculator will be revealed as part of a major overhaul to the Surrenden Invest website, which will be revealed later this year.
“Stamp duty rates and applicability have changed significantly in the UK over the past few years, with the result that many investors no longer have the clarity that they used to on what rate will apply to their property purchase. The new Surrenden Invest stamp duty calculator will provide potential investors with a quick, simple way to see how much stamp duty land tax they will pay when purchasing a particular property.”
The Government first started toying with stamp duty significantly back in 2014. Then-Chancellor of the Exchequer, George Osborne, overhauled the way the tax was applied. Previously, stamp duty jumped when it reached certain levels. The Government changed it to be more in line with the way that income tax works, with graduated rates of tax increasing along with the value of the property.
The 2014 stamp duty rules meant that no tax would be paid on the first £125,000 of a property, 2% would be paid on the portion between £125,000 and £250,000 and 5% would be paid on the portion between £250,000 and £925,000. A rate of 10% would apply to the portion between £925,000 and £1.5 million, while anything over that upper value would be taxed at 12%.
Less than 18 months later, the Government made another significant change to stamp duty, announcing that owners of more than one property would pay a higher rate on their second (and any subsequent homes). The bandings would remain the same, but with an additional 3% charged at every tier. Thus a property valued at up to £125,000 would incur stamp duty of 3%, while 5% would be paid on the portion between £125,000 and £250,000, and so on.
Fast forward to 2018 and Prime Minister Theresa May has announced yet another stamp duty hike. This time, foreign buyers of UK property are the target, with an additional 1% stamp duty land tax applied to any property that they purchase.
“We’re seeing a picture of stamp duty land tax becoming increasingly complicated to calculate, as the government continues to introduce new elements to it. With a change made to the rates every couple of years recently, it’s likely that further complications will follow. In any case, those using the Surrenden Invest website will soon have our new stamp duty calculator at their disposal, bringing some much-needed clarity to the situation.”