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Sandfords comment on new stamp duty rates

By Holly AddinallWednesday, 3 December 2014

Mr Osborne has today spelled out the new stamp duty rates in his Autumn Statement that will come into effective as of midnight, including the fact that each tax rate will only apply to the particular slice of the selling price, not the whole value of the property. Although there has been a big increase on expensive properties, Andrew Ellinas, Director of Sandfords believes the reform is positive news for the industry and is likely to help the London property market.

He comments: “The entire stamp duty system has been in desperate need of a reform for a long time and it does come as good news that the Chancellor has finally looked at each property band and updated it to become a payment like income tax. The implanted new bands seem fairer and less divisive than Labour’s proposed mansion tax on properties worth more than £2 million.

Even though house prices in the capital have increased more and more, this new system will mean that less Londoners will be dragged into paying huge amounts of tax as an apparent 98% of homebuyers will see a cut. This could increase the number of first time buyers in London, enabling them to get onto the property ladder, something that has proven to be very difficult, as it reduces the burden of stamp duty. It will also help young professionals and families that have been looking to take that second step and trade up the housing ladder.”

 

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