Stamp duty on the purchase of real estate will not be reduced this year

The industry of real estate in the UK in disappointment. Hopes that Chancellor Philip Hammond announced in the autumn session to reduce the tax burden on buyers of property, not justified. The main problem hindering the infusion of investors in the market, according to most real estate agents, is an additional Stamp duty of 3% for investors and buyers of a second property. Particularly strong tax pressure is felt in the upper sector of the market sector of elite real estate of London and southern England, where a progressive scale of Stamp duty, introduced in 2014, provided the already high tax burden.

Instead of the expected relief tax levies announced that in the residential sector of the real estate of England will infuse billions of pounds for affordable housing. But of particular concern to market participants feel about the ban to pay the agents fee when renting residential property. Such measures could be the result of misunderstanding of mechanisms of operation of the market rent of residential property in the UK.

There is no understanding and in part the need to reduce Stamp duty. In 2014 the real estate sector has undergone several gains tax burden. Now the situation is such that people in the expensive sector, willing to move, for example, to expand your living space, can’t do that because of high Stamp duty. For example, when buying an apartment in London is more expensive than £1 million, the buyer must pay to the budget 10% -12% Stamp duty. The situation of housing shortage is having a ripple effect on the affordable housing market. Revenues the increase in Stamp duty has not increased. Over the past year managed to raise just £330 million of revenues from Stamp duty instead of the expected £700 million, This means that the new scale of Stamp duty is not effective.

According to British International realty Sotheby’s, the market of real estate of England , there is the potential of residential property ready for resale at £20 billion. However, it is not placed on the market, because of the enhanced tax burden. Even a slight easing of the tax burden in the upper sector of the market could give a strong impetus to the entire sector of residential real estate in the UK.

® Helen Entree. 21.11.2016 G.

What “Stamp duty”

Tax on capital gains in the UK

Taxation legal. individuals in the UK

Land and types of ownership of property UK

The process of buying real estate

Why we recommend to buy new apartments and houses

Our apartments and houses in England excellent quality

Brexit: the naked triumph of the ignorant or the collapse of democracy?

Why Brits want to leave EU?

In the UK, reduced Stamp duty

Why buyers from Russia should not fear sanctions

More than 325 % over two years has earned our clients

Price indices for UK property

LEAVE APPLICATION FOR SELECTION OF REAL ESTATE

Prices in the property market of the UK are under pressure of uncertainty