I got that wrong!
Writing how there was little hope of any reform in stamp duty a day or two before the Chancellors Autumn Statement, I have been proven wrong.
The Chancellor found some ‘wriggle room’ as the level of National deficit was pegged back a little by lower than expected interest payments on the National debt. He used his ‘wriggle room’ to change what he described as a “badly designed” slab tax – the stamp duty on house purchases.
As things stood before 3rd December the amount of duty jumped at each threshold of value – always a bit daft that the tax you paid on a house brought for £499.999.00 would be so widely different to that for a house purchased for £500,100.00.
Simplifying and making more equitable this tax on housing sales will smooth the market and make is easier to trade. So many housebuilers have been ‘building around the stamp duty bands’ to avoid the inequity of pricing houses in a certain way. This changes in how the duty works will make new housing designs so much easier.
Implementing the tax gradually is a positive move and one that will help the residential land markets – it has to be good news.