Reports suggest that the Treasury is contemplating replacing stamp duty with a new property tax applicable to homes exceeding £500,000 in value.
The proposed tax would be paid by homeowners upon selling their residence, calculated based on the property’s worth and a rate determined by the government.
However, this new tax scheme would not eliminate stamp duty on secondary properties. The final decision on implementing these changes is still pending, as per The Guardian.
Should Chancellor Rachel Reeves announce any alterations, it would likely occur during a fiscal event like the Budget.
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Currently, purchasers in England and Northern Ireland must pay stamp duty on property acquisitions exceeding £125,000, or £300,000 for first-time buyers.
A spokesperson from the Treasury emphasized the focus on boosting the economy to enhance public finances. They highlighted planning reforms that are expected to generate £6.8 billion in economic growth and reduce borrowing by £3.4 billion.
The government remains dedicated to keeping taxes low for the workforce. In the last budget announcement, they ensured that the basic, higher, and additional rates of income tax, employee national insurance, and VAT would not increase.
Stamp duty rates in England and Northern Ireland
Scotland refers to stamp duty as the land and buildings transaction tax
Wales refers to stamp duty as the transaction tax
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