Do you know the stamp duty thresholds for 2011?
In the previous budget, a number of big changes were made to the stamp duty thresholds for 2011. The group who benefited the most from these changes was first-time buyers; while properties valued at more than £1 million have also been significantly affected.
From April 2011, first-time buyers can avail of a temporary two year holiday from stamp duty on properties worth up to £250,000. This is a big attempt by the government to attract new capital into a struggling property market and it makes it a lot easier for first-time buyers to get on the property ladder.
For properties that cost more than £1 million, a new flat rate of 5 per cent will charged for stamp duty. The new 5 per cent threshold came into effect on April 6, 2011.
Stamp duty is a one of the most important factors to consider when you're buying a new property. The rate of stamp duty you pay can have a big impact on whether a new house is affordable or not.
For 2011 the stamp duty thresholds are:
- 0 per cent for properties up to £125,000
- 1 per cent for properties between £125,000 and £250,000
- 3 per cent for properties between £250,000 and £500,000
- 4 per cent for properties between £500,000 and £1,000,000
- 5 per cent for properties more than £1,000,000
The best way to quickly and accurately work out how much stamp duty you'll have to pay on a new property is to use a stamp duty calculator. You can easily find these on many finance websites such as This Is Money and they're highly recommended if you're dipping into the property market.
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