New stamp duty threshold added

by Aaron Strutt

Mar 23 2012

Properties sold for more than £2m will be subject to a new 7% stamp duty charge, Chancellor George Osborne has confirmed.

The latest statistics from the Land Registry show that in November 2011 there were 121 homes sold for more than £2m in England and Wales. Of these 121 homes, 98 were in London.

Mr Osborne also ruled that stamp duty on residential properties over £2m bought through a company would increase to 15% with immediate effect. The government is particularly keen to stop Stamp Duty avoidance schemes and plans to announce more legislation to continue their tough stance.

Dominic Agace, CEO of Winkworth PLC, comments on the decision: “According to Rightmove, there are around 2,000 properties currently for sale at the £2million plus mark on their portal.  Given this relatively low volume, I question whether raising the Stamp Duty on properties at this level will have any notable impact when it comes to raising funds.  However, the new 15% Stamp Duty tax applied to properties at £2million plus bought via companies will be incredibly effective, closing the loophole that has been so exploited by the super-wealthy to date.”

March 23, 2012