Stamp Duty Shake Up?
Posted on Tuesday, December 2, 2014
The steep rise in the stamp duty tax paid by property purchasers at certain thresholds is rumoured to be something that is under consideration for review in the Autumn statement later this week. Currently very few transactions take place between £125,000 and £130,000 and more noticably, even less between £250,000 and £275,000.
This comes down to the fact that the stamp duty jumps from 1% up to £250,000 to 3% for transactions above £250,000, up to and including £500,000. Therefore, a purchaser buying at £250,000 pays £2,500 into the Treasury whereas a purchase price of just £1,000 more, £251,000, will line the pockets of the Chancellor to the tune of £7,530, an astonishing £5,030 more for an increase in price of just £1,000.
The potential to make the thresholds more flexible will be welcomed by property sellers, buyers and estate agents alike who will find it much easier to pull deals together around the normal "black-spots" of the current bandings.
For more information on how stamp duty could impact your sale or purchase, please do not hesitate to get in touch with myself via email, firstname.lastname@example.org.
John Ghent, Sales Manager, Berkley Estates.