Stamp Duty reforms – is it too good to be true?
One of the significant announcements in the recent Autumn Statement was the Stamp Duty reforms moving from a single rate on the purchase price to a system of paying tax on the property price within each band.
Anyone buying a home for less than £937,500 will pay the same or less Stamp Duty from 4 December 2014, following the Autumn Statement.
Interestingly it is claimed that following the announcements, those purchasing properties above £937,500 were frantically trying to exchange prior to the midnight deadline with potential Stamp Duty savings of £53,750 on a £2m property.
Though the reduction in Stamp Duty has been welcomed by many I can appreciate that this is not good news for all.
There is much ongoing debate as to the benefits of the changes though many argue that in the long term the benefits will be seen by the existing home owners and not those attempting to get on the property ladder as it is believed the reduction in Stamp Duty for properties below the £1m mark are likely to be cancelled out by vendors increasing prices fuelled by increased demand.
I have long given up trying to predict the housing market and as always we will have to wait and see.Talk to Barnes Roffe today