It’s been a long time coming but, at last, the Chancellor of the Exchequer has today announced a reform to the stamp duty land tax system in this country.
Sounds a tad boring, I know, but it will SAVE most homebuyers MONEY! In some cases it will save them THOUSANDS of POUNDS!!!
And it will hopefully put an end to people offering £250,000 for properties that are clearly worth more than that, using the stamp duty threshold as their excuse. Er… I mean, as their reasoning.
Until tonight, buyers have had to pay stamp duty as an overall percentage of the purchase price. Buying at £250,001 instead of £250,000 costs an extra £5,000 in tax (because the rate goes up from 1% to 3% on any price above £250k)! No wonder so many homes appear on the market for £249,950!
From tomorrow, though, this is all changing. The percentage rates are going up, but the rates will be worked out on a sliding scale, like with income tax. Buying at £250,001 tomorrow will add £0.03 to the bill.
Now, that’s a little easier to swallow, isn’t it?<