Outdated Stamp Duty slab rates abolished
Date online: 04/12/2014
The chancellor revealed that he intends to keep stamp duty on properties worth up to £125k at 0%. With a 2% rate added on the portion up to £250,000 then 5% on homes valued up to £925,000, then 10% up to £1.5m.
For the majority of those who pay stamp duty (98%) the announcement will come as a welcome relief with average buyers in London seeing a reduction of around £4.5k on stamp duty costs.
Many believed that under the old system sellers had been holding back because of the cost of moving home, which had led to prices increasing.
Paul Smith, CEO at haart, was pleased with the announcement and had this to say:
“Top marks for the Chancellor today who has paid heed to the property industry’s long held concerns over the punitive Stamp Duty Land Tax which has disproportionately affected homebuyers and sellers in the South East. By introducing a progressive tax banding system there will be more winners than losers and the reform takes the steam out of the proposed ‘mansion tax’.”