Majority of buyers benefit from progressive stamp duty

Some 71 per cent of homebuyers in England and Wales will benefit from changes to the Stamp Duty Land Tax (SDLT) announced in the Autumn Statement, according to Nationwide. Nationwide said that 86 per cent of purchases in London and the South East would profit from the Government’s decision to abolish the slab structure on Stamp Duty tax. Homebuyers in London are set to be the biggest beneficiary of the change due to the fact that home prices are generally higher and thus a higher proportion of transactions are liable for stamp duty. Overall, it is estimated that 98 per cent of buyers will pay the same or less tax under the new system in which purchasers pay the marginal tax rate on the relevant elements of the purchase price. According to 2013/14 data from the Land Registry, homebuyers in England and Wales would save an average of £1,600. In fact, according to the latest H M Revenue & Customs Tax Receipts statistics released in recent days, the Chancellor’s reform of the SDLT regime is already having an impact on tax receipts. The figures show that following the changes, SDLT receipts in January 2015 were down £299 million month-on-month, and…

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