The effects in the changes in Stamp Duty

Aug 04, 2015

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The Nationwide has studied the effect of the change in stamp duty rules that were announced in Chancellor George Osborne's Autumn Statement last year.

Since December, stamp duty has only applied to the amount of the purchase price that falls within the particular duty band, making it more like income tax. This replaced the old "slab" system.The Nationwide has estimated that the change has led to £275m less tax being paid.

In the first six months since the change, nearly 235,000 buyers in England and Wales have paid less stamp duty than they would have done under the old system, paying £1,800 less each on average. "The benefits are greatest in the South of England where average house prices are higher," Mr Gardner said."We estimate that around 85% of transactions in London, the South West of England and South East of England have benefited from the changes, compared with around 55% in the North of England, Yorkshire and Humberside, and the North West of England."

He said there was less "bunching" around price points where the thresholds sit, such as £250,000 and £500,000.Some 5,000 buyers paid more stamp duty than they would under the old system, at an average of £28,000. Two-thirds of these buyers were in London.