Legal News

The Chancellor of the Exchequer George Osborne has announced that more than 780,000 homebuyers have saved an estimated £657 million in Stamp Duty Land Tax (SDLT) in the year since the tax was reformed.

New figures show that transaction levels at the top end of the housing market have remained constant under the new regime – and stamp duty receipts from homes costing more than £1m increased by 15% across the year.

In December 2014, the government reformed the residential stamp duty system, changing it from a “slab” to a “slice” structure and reducing stamp duty for 98% of people who pay it.

New analysis released by HMRC shows the southeast saw the largest stamp duty saving – although it had a relatively higher average property price, as large number of properties fall between £125,000 and £1 million.

Homebuyers in other regions such as the northeast, Wales and Northern Ireland saved less, as these areas have fewer property transactions and many of these transactions pay no or very little SDLT.

The analysis shows, however, that the benefits of the reform have been felt across the country, with homebuyers saving an estimated total of £24m in the northeast or £900 for the average house.

Homebuyers in the northwest have saved £90m or £700 for the average house – while those in the East Midlands have saved £74m or £550 for the average house.

In the southwest, the changes have saved homebuyers £131m or £4,800 for the average house – while in Wales, homebuyers have saved £38m or £800 for the average house.

Chancellor George Osborne said:

“In 2014, I cut stamp duty – and already three-quarters of a million homebuyers across the country have benefited.

“The overwhelming number of homebuyers – 98% – are saving money thanks to our reform, which has done away with the unfair old system that meant increases being imposed on those paying just a pound over the threshold.

“These figures show that the benefits are being felt across the country – it’s a fair, workable, lasting reform to the taxation of housing.

“I am determined that this government will continue to take bold action to support a home owning democracy.

“Under the old slab system, homebuyers would have paid stamp duty at a single rate on the entire property price.

“With the new system, homebuyers only pay the rate of tax on the part of the property price within each tax band.

The news coincides with new analysis from the International Monetary Fund (IMF) which finds that stamp duty reform has “reduced distortions and is a step in the right direction”.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise on all property and housing matters, including Help to Buy, Right to Buy, shared ownership, planning consents and appeals, and buy-to-let.

Duncan Lewis also offers competitively-priced conveyancing services to homebuyers, including guiding first-time buyers through the conveyancing process.

The Duncan Lewis housing department is also able to advise landlords and public sector or private sector tenants on a wide range of housing matters – including right to rent checks, landlord’s obligations under the Housing Act, disrepair of rented accommodation, Landlord and Tenant disputes, tenancy agreements and unlawful eviction.

For expert legal advice on property and housing law, call Duncan Lewis housing solicitors on 0333 772 0409.