Higher rate Stamp Duty catches over half properties i...

19 April 2010

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2 Comments

Written by rosalind renshaw

Estate agents in London and the south-east are becoming increasingly concerned about the level of Stamp Duty on properties over £250,000.

Whilst Labour has promised a two-year holiday from Stamp Duty for first-time buyers paying up to £250,000, and the Tories have promised it permanently, none of the parties has addressed the issue of Stamp Duty payable at 3% on properties over £250,000.

Peter Ford, group operations director for Bader Holdings, parent company of Townends and Regents estate agents, said: “I would urge the next government to review the current 3% Stamp Duty threshold which now impacts on over half of all purchases in the south-east and London.”

The 3% rate was introduced in 2000 when the average house price was around £80,000.

Comments

- Ray Evans - The Grey Voter
The current system distorts the prices asked and paid for property. I believe at the moment there are four “slab” rates.
If it is considered too difficult to abandon the ‘slab’ method in
favour of a much fairer ‘slice’ method why not consider increasing the number of rates to be used in the ‘slab’ system to (say) ten? Start (say) up to £125,000 @ 0%, £125001 to £150,000 @ 0.5% and a further eight steps to £m+ when it could go to even more than 5%?. This would smooth the market, seem to be fairer all round and certainly help first
time (and second) time buyers on average-ish incomes. The percentages for each “slab” gradually increased and calculated to maintain acceptable revenues for the Government.
- 19 April 2010 14:50 PM
- Michael Day
Whilst I agree that all stamp duty levels are now highly punitive to so many when compared to Gordon's changes back in 1997 - it is such a simple tax to collect and, in a 1 million transaction per annum market SDLT raises in excess of £6bn that it is no wonder that all the political parties have ignored a root and branch reform a spart of their manifesto commitments.
- 19 April 2010 10:54 AM

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