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Stamp Duty 
Relentless house price inflation means that fewer than one in five properties now escape the £125,000 stamp duty threshold.The threshold was doubled from £60,000 only 18 months ago by the Chancellor and then increased again earlier last year to help first-time buyers to get a foot on the property ladder. It’s estimated that only 17 per cent of houses on the market now escape the tax, which equates to between one and four per cent of a property's value. Under the current rules, buyers pay stamp duty at a rate of one per cent of the property's value if it is purchased for between £125,000 and £250,000. This rises to three per cent for homes valued between £250,000 and £500,000 and then four per cent for those above the £500,000 mark. The Government have been urged to change the structure of stamp duty after the release of figures showed "huge" regional differences in the payment of the tax. The Council of Mortgage Lenders have said that the current system needs reforming to reduce the burden faced by first-time buyers trying to buy in places of high property prices. Its figures showed that four out of five first-time buyers in the North escape paying the levy compared with only one in 33 in London. House buyers in the South East fare little better, with only 18 per cent falling below the stamp duty threshold. If you require any further information about the services that we provide or would like to review your financial planning position, please contact us |