Record Level Of Stamp Duty Paid Over Last 12 Months
Buyers across the UK have paid out a whopping £8bn in stamp duty over the last 12 months in what has been a record breaking year for the treasury. The mount of stamp duty paid by people buying a home in Britain is higher than it was back in 2008 before the financial crisis.
In 2008 the amount of money collected by the treasury was £6.68bn. This was the previous record and highlights the need for change that we saw with the new stamp duty rules that were introduced by the Chancellor. The amount of stamp duty that was collected back in 1995 was £520million.
No clearer evidence is needed that the new stamp duty reforms were well overdue. The old system was so punitive and damaging to the finances of people looking to get on the housing ladder. There is an argument to say that the reforms did not go far enough and that the changes are only a step in the right direction as far as some experts are concerned.
Stamp Duty Is Seen As A Punitive Tax And Is Very Unpopular
Stamp duty is a very unpopular tax as far as the property industry is concerned and many would like to see the tax abolished completely. With the new changes no stamp duty is paid up to the purchase price of £125,000 but how many sales in the UK are below that figure? Not many is the answer. Three quarters of the sales in England and Wales were above £125,000 so not many buyers will get away with paying nothing at all.
It is yet to be seen whether or not the new changes will affect the market for homes valued at more that £938,000 as this is the threshold at which stamp duty becomes more expensive.
It is unlikely to have a detrimental effect whilst houseprices are powering ahead but could have a negative impact if the housing market goes through a sticky patch. As long as there is momentum in the market buyers will continue with their plans regardless of whether they have to pay a couple of thousand more in stamp duty.