Monthly Archives: December 2014

BOEThe Bank of England’s Monetary Policy Committee (MPC) has voted to hold the Bank Rate at 0.5% and keep quantitative easing at its existing level.

UK interest rates have been held at a record low of 0.5% for another month by the Bank of England.

It also decided to maintain its quantitative easing programme, designed to stimulate lending in the economy, at the £375bn already spent.

The Bank’s Monetary Policy Committee has held rates at 0.5% since March 2009 to try to help economic recovery.

Until recently rates were expected to rise early next year, but analysts now think this could be pushed back.

The Bank warned last month that the inflation rate could fall to as low as 1% in the coming six months, well below its 2% target rate.

One factor in keeping inflation low has been the 25% fall in the oil price since the summer, which has cut fuel prices at the pump for motorists.

This calculator can be used for residential property or non-residential property.

The calculator works out the Stamp Duty Land Tax (SDLT) you’ll have to pay for residential purchases (including lease premium) using new rules effective from 4 December 2014. It also shows how much SDLT is due under the previous rules and for non-residential purchases.

Stamp Duty Land Tax calculator

Osborne scraps Stamp Duty slab structure in Autumn Statement

George Osborne will abolish the slab structure of the Stamp Duty Land Tax from midnight tonight and will replace it with new layers of tax rates which will lower the cost of buying a home for 98% of the country.

People buying homes will only pay the tax rate on the part of the property which falls within the band instead of paying it on the whole property price.

For homes up to £125,000 no stamp duty is payable then;

£125,001 to £250,000 – 2%

£250,001 to £925,000- 5%

£925,001 to £1,500,00- 10%

£1,500,001 and above 12%

Osborne referred to the old system as a ‘badly designed tax’ which placed the biggest burden on low and middle income families.

The new rules start tomorrow, on 4th December. People who have already exchanged contracts on their new home purchase but have yet to complete will get to choose whether they use the old or new stamp duty rules.

In Scotland the new rates will apply until 1 April 2015 when the Land and Buildings Transaction Tax replaces it.

The Chancellor said that for a home which cost £255,000 the Stamp Duty charge would be £4,500 lower than it would have been under the old system.

Osborne said the new approach to calculating the tax removed the need to revalue the UK’s stock of homes.

The old rates were;

£125,001 to £250,000 – 1%

£250,001 to £500,000 – 3%

£500,001 to £1m – 4%

£1,000,001 to £2m – 5%

Over £2m – 7%.

Osborne said just 2% of the population would lose out under the new structure and rates.

He said someone buying a home worth more than £5m would now pay £514,000 in Stamp Duty compared to £350,000 previously.

To read the government’s factsheet on the new Stamp Duty Land Tax “click here

Five million people in England and Wales who own their flats should be given new rights, the Competition and Markets Authority (CMA) has said.

During its eight-month study, the CMA found that many leaseholders suffer from excessive charges or poor service by property managers.

It concluded there should be new laws to help flat owners get rid of bad property managers, by a majority vote. Read the full story “Click here”