Stamp duty on a 1 and a half million pound home has jumped 12 times over the last 15 years against threefold house price rise
With just minutes to spare before the Chancellor’s midnight stamp duty cut-off, an estate agent completed his final deal of the day, after his clients went on a £100m property spending spree.
During last week’s Autumn Statement the Chancellor announced an overhaul to the British stamp duty system, switching the slab based structure, he described as “badly designed” to a graduated one, ridding the housing market of huge jumps in tax at different price points in the market.
Osborne slashed the stamp duty burden for 98% of buyers.
While he delivered savings for the majority, the news sparked chaos in the high-end market when buyers realised that on properties worth over £937,000 they were facing a leap in taxes.
Analysis found that people purchasing a home with a £1m price tag will pay £3,750 more under the new system but £53,750 more on a £2m home. This rises to £163,750 on a £5m home.