UK has cut stamp duty for the majority of homebuyers to make it fairer. The new rules have started on 4 December 2014.
This change applies to people those who are buying a home in the UK for over £125,000. Under the old rules, it would have been paid tax at a single rate on the entire property price. Now it will be required to pay the rate of tax on the part of the property price within each tax band – like income tax. Under the old rules if someone bought a house for £185,000, he would have had to pay 1% tax on the full amount – a total of £1,850. Under the new rules, for the same property he will be required to pay nothing on the first £125,000 and 2% on the remaining £60,000. This works out as £1,200, a saving of £650.
