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.
