Fees taxes increase if to reduce tax rates

The amount of Stamp duty in England and Wales from the sale of residential property will increase in 2014/2015, according to preliminary estimates, to a record £8 billion. Such data shared by the Bank Halifax.

About a third of all buyers of homes in the UK have to pay Stamp duty. In London is actually 100% homebuyers in London and the North of England and in Wales – about half.

Moreover, the share of London in the budget Stamp duty is growing every year. If in 2006/2007 is the proportion of London was 28%, in 2013/2014 – it has already reached the value of 42%.

It is estimated that in Halifax, the increase in Stamp duty from £6,45 billion in 2013/2014 to a record value of £8 billion in 2014/2015 will be the biggest gathering after the housing boom, which was observed last time in season 2007/2008 , when gross reached £6,68 billion. In season 1994/1995, twenty years ago, has raised 15 times less – about £520 million.

In December 2014 introduced a new, progressive scale of stamp duty, according to which, tax-exempt all property buyers cheaper £125,000 pounds. Buyers of real estate more expensive than £125000 have to pay tax on the difference between the purchase price and the original threshold of £125000. Especially noticeable savings on stamp duty to buyers of cheap real estate up to £500 thousand for Example, the buyer of a house costing £259708 will pay a total of £2985 pounds. Under the old flat rate of Stamp duty, the size of the Stamp duty would be £7791. The saving is £4806 pounds. Significant savings on stamp duty felt buyers all regions that had an immediate impact on the volume number of trades in the market. For the period from December 2014-January 2015 the market was made more deals than three months from September to November 2014.

A turning point in the new scale is the sum of £938000 pounds when the buyer already pays more than I previously paid. However, the sale of real estate is more expensive £925000 also increased by 9% since the change of the scale which confirms that the increase in Stamp duty does not affect the decision of buyers in this sector.

® Helen Entree. 16.03.2015

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