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Stamp Duty changes not so welcome for a few…

Stamp duty on residential property was reformed and came into effect last week so that rates apply only to that part of the property price that falls within each band 0% paid for the first £125,000 then 2% on the portion up to £250,000 5% up to £925,000, then 10% up to £1.5m; 12% on anything above.

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Enable’s IFA’s of Bishop’s Stortford can see that for many this is a fairer welcome change to an unpopular and outdated approach which had proved very uncomfortable for buyers around the thresholds. However, the new rates reveal that anyone purchasing a property with a value above £937,500 will be worse off, in some cases by a considerable amount.   For example, a £1.5m property will now attract stamp duty of £93,750, which is £18,750 more than under the old system. In contrast, a £510,000 property will see a 24% reduction in stamp duty and buyers of £210,000 properties would pay 19% less.

 “The Chancellor’s announcement on the changes to stamp duty is excellent news for buyers of properties valued under £950,000, although it is not so good news for ‘squeezed professional middle’ buying above the £1m-mark and is a real blow for all buyers at the top-end of the market.” Said Robert Bartlett, Chestertons’ CEO, “My real concern is how this move has the potential to damage London’s standing as a global city by discouraging wealthy international buyers from investing here and the knock-on effects that this could have to the broader London economy.” Enable’s Mortgage brokers in Bishop’s Stortford are happy to advise on property investments in London and its environs.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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