STAMP DUTY REFORM CAUSES PROPERTY SALES RUSH
More properties were sold in a single day than any other in the last decade as people looked to push transactions through before the new top rate of stamp duty was introduced at midnight on 3rd December.
The research conducted by Dataloft and Lonres also revealed that in London’s most expensive areas such as Chelsea and Knightsbridge, one in six homes sold in the last quarter of the year changed hands on the final day of the old system.
In December, the previous “slab system” was modified to a more progressive scale which means that anyone paying more than £937,000 has been hit by a higher rate of tax. Homes costing more than £1.5m now command a substantial rate of 12%.
At Fiducia, our efficient and legally compliant mitigation services will be able to assist you, meaning you should not be worried about the amount of tax you are being asked to pay or be holding off from buying the home you want
OVER £9M IN TAX AVOIDED
In total, £9.4m in taxes were saved as buyers dashed to exchange contracts and estate agents opened late to ensure that deals were completed in time.
Subsequently, prices in London have fallen into the cheaper price brackets and the volume of sales has also dropped considerably:
- Homes worth less than £1m – 40% fall
- Homes priced £1m – £2m – 20% fall
- Homes priced £2m – £5m – 29% fall
Even before George Osborne raised the stamp duty thresholds, the central London housing market was already slowing down. During the first half of 2014, more homes worth over £2m taken off the market than actually changed hands.
SAVE ON STAMP DUTY WITH FIDUCIA
At Fiducia, we assist with the efficient mitigation of stamp duty on property transactions. If you have been discouraged from moving, our transparent and fully compliant processes could ensure you are in a strong position to buy your dream home.
Contact us or call the Fiducia team today on 01625 599 200 to find out more.