Mortgage lender calls for sellers to pay stamp duty tax

September 24, 2016 by Brendan

A leading UK lender believes that people who are selling a property should be responsible for paying the stamp duty tax, rather than the buyer being charged.

The Yorkshire Building Society has approached the government, suggesting that stamp duty tax is reformed so that buyers do not have to pay the bill. Stamp duty is currently charged for anyone buying a property over £125,000. From £125,001 to £250,000, the percentage payable is 2% of the amount paid for the property. The percentages gradually increase as the value of the property goes up, up to a maximum of 12% for a property worth £1.5 million or more.

For anyone who buys a second property, like a landlord or a holiday home, 3% extra will be added to the current rates. According to the Yorkshire Building Society, making sellers pay stamp duty tax would help homebuyers and increase the transactions. The lender states that a first-time buyer who saves £250 per month would save an average of £3,791, which would help them to purchase a home 15 months earlier. The proposed plan has been sent to the government before the autumn statement is released in November.

The lender also predicted that introducing the move would result in 16,000 more transactions in the first 12 months, which would include 6,000 first-time buyers. Until such a time when the suggestion has been implemented, buyers should approach a CeMAP qualified adviser to see whether they can afford the stamp duty tax payable on a property.

Written by

Brendan
Brendan

You may also interested in:

Advisors express high levels of satisfaction with lenders

Mortgage advisors in the UK have expressed their highest levels of satisfaction with lenders in five years, according to a new survey that has just been published.

New no-deposit loan introduced by April Mortgages

April Mortgages has announced the introduction of a new no-deposit mortgage product designed to help borrowers offset rising UK house prices.

First quarter lending increase revealed by NatWest

NatWest has revealed that it saw a significant increase in lending during the first quarter of this year, with the stamp duty deadline being credited as the main reason for