New UK Stamp Duty reform welcomed by property investment experts
UK Chancellor George Osborne’s Autumn Statement this week was, it can be reasonably assumed, an attempt to win over middle class voters ahead of next year’s general election. One way he has attempted to achieve this aim was with the introduction of Stamp Duty reforms that are set to reduce purchase costs for 98 per cent of UK property buyers.
The deVere Group Mortgage team has studied the changes and reached the conclusion – the UK government Stamp Duty reform is a welcome measure for UK property buyers.
Previously, Stamp Duty was levied in fixed bands that had the effect of creating false ceilings of value. Under the previous Stamp Duty system, vendors tried to avoid marketing their homes at or around the banding limits. This created a bunching of properties at certain prices, distorting their true market value.
The Stamp Duty rethink means that properties will now be taxed on a progressive basis which goes like this
Property purchase price Rate paid
(on part of the price within each band)
Up to £125,000 0%
Over £125,000 up to £250,000 2%
Over £250,000 up to £925,000 5%
Over £925,000 up to £1.5m 10%
Over £1.5m 12%
This fundamental change will mean the majority of property buyers will now pay less Stamp Duty. For sure, there’s never been a better time to buy – and never been a better time to get in touch with us to discuss how to add or manage property investments in your portfolio.
Our advice and expertise will see you through the nuances of this reform and head you in the right direction to take advantage of the new progressive rates.
Even if you’ve already exchanged but not yet completed, speak to us first and see how we can help you achieve your goals.
deVere Group also specialises in expat mortgages, with an unrivalled product range specifically designed to help British expatriates wishing to purchase property in the UK with every aspect of the buying process. In recent times, we have seen growing demand from our clients around the world for real estate investment services and products. I’m confident that the Chancellor’s announcement on Stamp Duty will fuel this further.
Contact deVere United Kingdom for more information at mortgages@devere-uk.co.uk or telephone +44 8458625700
