Home is where the Labour heart is
The Chancellor gave a small helping hand to first-time buyers stepping onto the property ladder today at the expense of some wealthy house buyers.
The stamp duty threshold for first-time buyers acquiring property doubles from £125,000 to £250,000 at midnight tonight. The increase takes effect for the next two years and is clearly intended to boost the residential property market.
At the other end of the residential property market, the stamp duty rate on homes worth over £1m increases from 4% to 5% from April 2011 – bringing in at least an extra £10,000 per sale.
Nick Cartwright, head of property at Smith & Williamson, the accountancy and financial services group, commented that:
“In reality the term ‘first-time buyer’ excludes a large percentage of potential new home owners, including those who have previously owned or inherited a property. This is consequently of marginal benefit to a select few. However, the increase at the top end of the market is likely to act as an irritant rather than a deterrent given the amounts involved and so is likely to bring in additional receipts for HMRC.”
For further information, please contact:
Nick Cartwright – Head of Property – 020 7131 4801
Richard Mannion – National Tax Director – 020 7131 4252 / mob 07799 761326
PR queries:
Kate Harrison 020 7131 4228
Jess Koslow 020 7131 4264
Matt Rowe 020 7131 4550
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Note to editors
Smith & Williamson is an independent professional and financial services group employing about 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Bristol, Glasgow, Guildford, Maidstone, Salisbury, Southampton, and Worcester.
Smith & Williamson Limited
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International, a worldwide network of independent accounting firms.
