Welcome...kkk. to Buyabetterhome fgdfhgdfgdfgdfgdfgdf
Following the latest budget, the Government has outlined its planned modifications to the stamp duty system. Properties sold for more than £2m will now be subject to a charge of 7% of the purchase price. This will represent an extension to the current stamp duty thresholds, where residential properties over £1m are liable for 5% stamp duty. In addition to this, those buying properties for over £2m via a company will now pay 15%.
The Chancellor, Mr Osborne, said that those who bought at the top end of the market should contribute more: It is fair when money is tight, and so many families could do with help, that those buying the most expensive homes contribute more. The move is predicted to generate an additional £150m for the treasury in the next financial year & rising to £300m by 2016-17.
The change will only affect a small number of house buyers; Land Registry figures for November 2011 show that there were only 121 homes sold for more than £2m in England and Wales. That is just 0.2% of the total 57,967 houses sold that month, and of those 121, 98 were in London.
In addition to this new extra tier of high-level of stamp duty, the chancellor is clearly keen to close some loopholes. One popular way of stamp duty avoidance was to set up a limited company to buy the property, which immediately sold it back to the individual, or which pushed the price up when selling on to the next buyer & done by the owner selling shares in the company, rather than the property itself. From now on, those buying properties for over £2m via a company will now pay 15% stamp duty.
Also, overseas companies that already own UK residential property worth more than £2m will be subject to capital gains tax from April 2013. A somewhat controversial move for the chancellor, as it could well make the UK less attractive to foreign investors.
New Stamp Duty Thresholds for Residential Property Purchase
Purchase Price |
Stamp Duty Payable |
£125,000 to £250,000 |
1% |
£250,000 to £500,000 |
3% |
£500,000 to £1,000,000 |
4% |
£1,000,000 to £2,000,000 |
5% |
Over £2,000,000 |
7% |
Sources: bbc.co.uk, hm-treasury.gov.uk (image courtesy of telegraph.co.uk)
