Autumn Statement Response: Call for Indexation of Threshold as New Stamp Duty Rules Hit Buyers of High Value Houses
Middle England will gain from the new stamp duty rules announced in the Chancellor’s 2014 Autumn Statement (which came into force on 4 December) and some of the pain previously felt by the majority of buyers will move to the buyers of higher priced houses as Amanda Holden, head of residential conveyancing in the Solihull office of lawyers The Wilkes Partnership explains:
“In a move which could hit the market for higher priced homes, buyers of houses of more than around £937,500 will see much higher stamp duty on the deal.
“My view is that the new system will be much fairer for most and will give the market a modest boost, but I believe that the government is going too far in setting such high rates
for transactions over £925,000 when ten per cent on the excess will become payable.
“Further house price inflation will mean that more houses in Solihull and Warwickshire will be sucked into this bracket and prices could be affected, especially as the market has slowed just a little in recent months.
“I would like to see a commitment to index linking the £925,000 threshold in particular and perhaps the other tipping points where stamp duty rates will rise.”
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