In the Autumn Statement the Chancellor made substantial changes to the way Stamp Duty is calculated for Residential Property. From midnight on the 3rd of December 2014 the new rates will be:
- Up to £125,000 0%
- Between £125,000 and £250,000 2% of that amount
- Between £250,000 and £925,000 5% of that amount
- Between £925,000 and £1.5m 10% of that amount
- Above £1.5m 12% of that amount
However, note that this only relates to Residential Property. For Non-Residential or Mixed Use Property the rates have not changed:
- Up to £150,000 0%
- Between £150,000 and £250,000 1% of the full amount
- Between £250,000 to £500,000 3% of the full amount
- Over £500,000 4% of the full amount
So if you buy a Residential Property for £1.5m the stamp duty will be £93,750. However if you buy a Farm for £1.5m the stamp duty will be £60,000.
As the sums involved are substantial it is worth making sure your property is classified correctly.
We at Green and Co have a wealth of knowledge when it comes to farms and farm businesses so give us a ring to find out the best way of arranging your business to minimise your tax liability.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.