This new system is anticipated to result in 98% of purchasers paying less in SDLT than under the previous system, with houses selling below £937,500 attracting the same or less in the way of SDLT liability. It is the higher value properties that bear the brunt of the reductions at the lower end. The graph below gives examples of the difference made by the new rules at different house prices. These changes mean that SDLT will no longer prove an artificial barrier to house price increases at certain levels, and we applaud the Government for the changes – well overdue and much needed!


Of course SDLT is only one tax affecting property purchases, as Income Tax, Capital Gains Tax, VAT and Inheritance Tax may also have an impact, depending on the future use of the property. The best time to consider whether the purchase is being made in the most tax efficient manner is BEFORE exchange of contracts. Do speak to your usual Old Mill contact if you would like advice regarding property transactions you may be considering.


Would you like to know more? Contact Nicola Allen on 01935 709382 or email


nicola.allen@oldmillgroup.co.uk


See page 24 for advice on planning your pension


14


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