WHAT WOULD BORIS JOHNSON’S STAMP DUTY PLANS MEAN FOR YOU?
In the last five years, the property market has been battered by changes to stamp duty. It’s been hiked at the top end, abolished at the bottom, and boosted for landlords, leading to a slowdown in sales, a sluggish market and a higher take for the Treasury’s coffers.
Now Boris Johnson has proposed a plan to overhaul the whole stamp duty system yet again. Reports suggest that Johnson plans to drastically raise the threshold for paying stamp duty from its current level of £125,000 to £500,000 at the same time as lowering the top rate from 12pc to 7pc. What does it mean for buyers and sellers?
According to analysis by Savills, Johnson’s plans would free over 300,000 property buyers from stamp duty, based on 2018/19 figures. Added to the number of properties sold that are already exempt from the tax, this means that a total of 651,500 transactions from last year wouldn’t have paid stamp duty.
This is equal to 71pc of residential transactions in England and Northern Ireland that would be exempt from stamp duty under the plans.