Government and high end residential to pay the price for stamp duty savings
3 December 2014
Toby Price, director of the Stamp Taxes Group at Deloitte Real Estate, comments on the changes in stamp duty:
“The changes to remove the ‘pinch points’, which previously saw houses prices bunching at, or under, each stamp duty land tax (SDLT) rate increase, is welcomed. Also welcome is the reduction in the effective rate of SDLT for the vast majority of purchasers.
“However, with eight per cent of purchasers of homes in London paying in excess of £1m, an increase in SDLT to 10% and 12% is likely to have most impact in the London property market. For £1m plus homes, we would expect to see an impact on prices, liquidity and properties being built. In contrast with the changes coming into effect in Scotland, which are fiscally neutral, the changes to SDLT are projected to cost the Exchequer roughly £800m per annum.”
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