New Document Duty to Benefit Many with Sliding Pay Scale

4th October 2016

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The States 2017 budget will introduce a graduated scale of Document Duty on house purchases with effect from 1st January 2017.

According to Deputy Gavin St Pier, President of Policy and Resources, house purchases below £800,000 will see a reduction in document duty, presently charged at a flat rate of 3%.

The percentage reduction increases on a sliding scale basis as the house price lowers. Purchasers of average priced houses, currently calculated as £434,571, will see a reduction of approximately £2,000, says Deputy St Pier.

The threshold for tax relief on mortgage payments reduces from £15,000 to £13,000, however, it seems to be the States long held aim to eventually cancel it entirely.

Want to find out more about the new Document Duty? Read our guide from Carey Olsen expert Jason Morgan.