{"id":350,"date":"2015-12-03T16:09:47","date_gmt":"2015-12-03T16:09:47","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/winners-and-losers-in-stamp-duty-reform\/"},"modified":"2018-02-19T08:08:01","modified_gmt":"2018-02-19T08:08:01","slug":"winners-and-losers-in-stamp-duty-reform","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/winners-and-losers-in-stamp-duty-reform\/","title":{"rendered":"Winners and Losers in Stamp Duty Reform"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<div>George Osbourne\u2019s Autumn Statement, delivered today in the House of <a class=\"wl-entity-page-link\" title=\"Common land\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/common-land\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/common_land;http:\/\/rdf.freebase.com\/ns\/m.013c51;http:\/\/dbpedia.org\/resource\/Common_land\" >Commons<\/a>, was a mixed bag. But one policy change that stood out immediately was the new Stamp Duty system that will kick into action at midnight tonight. Few people were surprised at the change in legislation (Stamp Duty has been crying out for reform for years), however the speed at which the new rules will come into force was a shock for many.<\/div>\n<div>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">Osbourne boasted that 98% of households would either benefit or be no worse off under the new rules \u2013 and looking at the average <a class=\"wl-entity-page-link\" title=\"house prices\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/house-price-index\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/house_price_index;http:\/\/yago-knowledge.org\/resource\/House_price_index;http:\/\/rdf.freebase.com\/ns\/m.0gn3x3;http:\/\/dbpedia.org\/resource\/House_price_index\" >house price<\/a> in the UK of roughly \u00a3275,000, buyers would indeed make a significant saving of \u00a34,500.<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: medium;\">New Stamp Duty <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >Rates<\/a>:<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a30 &#8211; \u00a3125,000 = 0%<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a3125,001 &#8211; \u00a3250,000 = 2%<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a3250,001 &#8211; \u00a3925,000 = 5%<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a3925,001 &#8211; \u00a31,500,000 = 10%<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a31,500,001 and over = 12%<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">One point the Chancellor has failed to mention is that the new gradual Stamp Duty system bares striking similarities to the recently introduced Scottish Land <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/tax;http:\/\/rdf.freebase.com\/ns\/m.07g82;http:\/\/dbpedia.org\/resource\/Tax\" >Tax<\/a> Reform, which also got rid of an out-dated and <a class=\"wl-entity-page-link\" title=\"Market (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/market-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/market_economics;http:\/\/dbpedia.org\/resource\/Market_(economics)\" >market<\/a>-distorting slab approach in favour of a graduated system. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">High-end <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a> owners will be hit the hardest, as the new rules deliver a second blow following Labour\u2019s proposed Mansion Tax. Whichever party gets into power come the General Election, buyers of \u00a32million plus properties will be <a class=\"wl-entity-page-link\" title=\"Eminent domain\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/eminent-domain\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/eminent_domain;http:\/\/rdf.freebase.com\/ns\/m.0127bq;http:\/\/dbpedia.org\/resource\/Eminent_domain\" >taking<\/a> a big hit. Although \u00a32million plus homes will be hit hardest, anyone buying a home worth more than \u00a3937,500 will also be worse off.<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">Now the real question is, are there any buyers of high-end properties out there who will manage to complete before midnight tonight and avoid the new tax rules? I\u2019ve heard that <a class=\"wl-entity-page-link\" title=\"Estate (law)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/estate-law\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/estate_law;http:\/\/rdf.freebase.com\/ns\/m.038t85;http:\/\/dbpedia.org\/resource\/Estate_(law)\" >estate<\/a> agents can work wonders, but pulling off a sale before midnight under pressure from a suddenly distressed buyer would be miraculous. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">For an unlucky buyer completing on a \u00a32million <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a> at 00:01am tonight, they will have lost an extra \u00a318,000 in that one minute. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">And vice versa, any buyers of a more reasonably priced \u00a3510,000 home, completing between now and midnight will lose out on \u00a34,900 worth of savings that the new rules would afford them. <\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">Here we have compiled the potential savings under the new system to show how much better (or worse) off you could be come tomorrow morning:<\/span><\/p>\n<p class=\"MsoNormal\"><img loading=\"lazy\" src=\"https:\/\/fbcdn-sphotos-h-a.akamaihd.net\/hphotos-ak-xpf1\/t31.0-8\/10460830_569198699848198_7962811915265575096_o.jpg\" alt=\"\" width=\"640\" height=\"480\" align=\"none\" \/><span style=\"font-size: medium;\"><br \/>\n<\/span><\/p>\n<p class=\"MsoNormal\">\u00a0<span style=\"font-size: x-small;\">Graph compiled by \u00a0The House Shop using Government Stamp Duty data<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: xx-small;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">As we can see, the vast majority of properties will benefit from the new rules, although some will benefit much more than others. The real losers under the new system are buyers of high-end properties worth over \u00a3937,500, but again there is variation in by how much these buyers will lose out.\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: xx-small;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">Many home-owners and first time buyers will be glad to see the old \u2018slab\u2019 rules thrown out, and the market will surely benefit from the removal of distorted &#8216;no-mans-<a class=\"wl-entity-page-link\" title=\"Land\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/land\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/land;http:\/\/dbpedia.org\/resource\/Land\" >lands<\/a>&#8216; just over the old thresholds. With the vast majority of buyers benefiting from the new rules, this should be a popular policy to give the Conservatives the little boost they need before next year\u2019s General Election.<\/span>\u00a0<span style=\"font-size: medium;\">On top of this, the new rules should help bring an end to the distortive impact of Stamp Duty on the property market.\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: medium;\">Franki Chaffin-Edwards<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>George Osbourne\u2019s Autumn Statement, delivered today in the House of Commons, was a mixed bag. But one policy change that stood out immediately was the new Stamp Duty system that will kick into action at midnight tonight. Few people were<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/winners-and-losers-in-stamp-duty-reform\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":3470,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,15,17,8],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2014\/12\/stamp-duty-image.png","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/winners_and_losers_in_stamp_duty_reform","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/350"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=350"}],"version-history":[{"count":7,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/350\/revisions"}],"predecessor-version":[{"id":14823,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/350\/revisions\/14823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/3470"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=350"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}