Buying property in London UK is an expensive business every sale attracts stamp duty which ranges from 1 percent to 4 per cent depending upon the value of the real estate being bought. House prices in London have soared however the thresholds remain at £250,000 and £500,000 creating a stealth tax.
Conservative MP Justine Greening said “Despite all the warm words in the Budget the result has been the fleecing of the British people who have to pay more in stamp duty every year”.
Chancellor Gordon Brown in his ninth Budget answered his critics and raised the stamp duty threshold which has now been doubled to £120,000, providing a welcome boost to UK homebuyers. Regional house price differences mean that raising the threshold will have a greater impact in the north and west of the UK than in the south east.
Peter Bolton King, chief executive of the National Association of Estate Agents, said that raising the stamp duty threshold was "long overdue".
New Stamp Duty Thresholds
Up to £120,000 - nil
£120,001 to £250,000 - 1%
£250,001 to £500,000 - 3%
More than £500,000 - 4%
London property buyers pay an average stamp duty of £8,615 total receipts from stamp duty are predicted to be 14.3 billion in 2007/8 up from 10.9 billion in 2005/6.