Taunton Stamp duty
The Chancellor made a significant change in this year’s Autumn Budget Statement that has made a big difference to the people of Somerset and that was to alter Taunton Stamp Duty Land Tax.
The system before was the old “slab-system” for stamp duty land tax with the rate applying to all of the property value.
The new rules, mean that only the portion of the value of the property in the band will be charged at the rate appropriate to that band.
Taunton Stamp Duty changes
The change will have a big impact on the amount of stamp duty land tax charged, the Taunton stamp duty, for a lot of high value properties, will increase. However, this is an area of the market where the number of properties sold is relatively small.
For properties costing less than £1,000,000 the lower Taunton Stamp Duty will apply.
The change in Taunton Stamp duty at the lower levels may well result in increased movement in property at the levels up to a value of £400,000. This increase in property sales should see increased tax revenue despite a fall in the rate of tax as the number of sales increases.
Taunton Stamp Duty Land Tax
| Property value | £124,000 | £240,000 | £300,000 | £400,000 | £750,000 | £1,000,000 | £2,000,000 | £5,000,000 |
|---|---|---|---|---|---|---|---|---|
| Stamp Duty Land Tax - Old Rules | 0 | £2,400 | £9,000 | £12,000 | £30,000 | £40,000 | £140000 | £350,000 |
| Stamp Duty Land Tax - New Rules | 0 | £2,300 | £5,000 | £10,000 | £27,500 | £43,750 | £153,750 | £513,750 |
| Increase/decrease | - | -£100 | -£4,000 | -£2000 | -£2,500 | £3,750 | £13,750 | £163,750 |