Stamp Duty the most complex Tax? Is it killing the property market down

The changes to Stamp duty introduced initially by George Osborne and followed through by the current Chancellor seem to have achieved the aim of raising taxes but at the same time ated as a large negative for Buy to Let investors and First time buyers who have to buy in the South East and London.

The punitive rates for First Time buyers have become a negative that balances out any of the support to First Time buyers offered by Help to Buy schemes. It all means that if you are faced with London or South East first time buyer property prices then the Government has probably increased your costs considerably. This regional discrimination will no doubt affect the perception of the Government among the more youthful elements of the population.

It has become such a glaring issue that a daily newspaper ” The Daily Telegraph ” has started a campaign to influence the Chancellor in order to see reductions in Stamp Duty for First Time buyers and I guess we all would like to see this campaign succeed.

The newspaper has also highlighted how complicated the Stamp Duty regime has become, no doubt like others before him the Chancellor will say he aims to simplify the Tax system, then if this is true ( I suspect it is not ) then Stamp Duty would be a good place to start.

 

In fact the Telegraph has published an up to date calculator which is I have to say very useful, but also shows how complex this element of the Tax system has become.

 

http://www.telegraph.co.uk/finance/autumn-statement/11271926/Stamp-duty-calculator-how-changes-affect-you.html

 

Buy-to-let property market ‘has recovered after stamp duty hike’

Interest in the buy-to-let property market from investors has bounced back following a stamp duty hike for the sector in April, according to a property website.
Rightmove said the number of number of inquiries from landlords and investors about buy-to-let property purchases was up by nearly a third (30%) in September compared with May.

On April 1, a three percentage point stamp duty increase came into force for people buying second homes, including buy-to-let properties, in England, Wales and Northern Ireland. Stamp duty has been abolished in Scotland, but a similar tax increase came into force to mirror the changes in the rest of the UK.

Read the full article here.

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Increase in Stamp Duty on second homes makes Landlords look for cheaper properties

Landlords in the UK are looking for cheaper properties in response to the new 3% stamp duty charge on additional homes, according to the latest lettings index to be published.

Average price paid by investors in April fell by 8.3% month on month, from £194,000 to 178,000 and London saw the biggest change in behaviour with landlords buying homes costing 16.4% less than the previous month.

Read the full article here.

Need a fixed cost conveyancing quote for your next property? Whether it’s for an investment or you’re simply moving house, use our quick and simple Quote Engine.

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