Household Bills
Budget 2014: Private buyers to benefit from stamp duty changes
Changes to stamp duty rules aimed at stopping wealthy investors purchasing property through companies will increase housing stock, an expert has claimed.
In his fifth annual Budget, the Chancellor said that from midnight tonight anyone purchasing a home worth more than £500,000 through a “corporate envelope” will be required to pay 15 per cent stamp duty.
This tax was previously only levied on residential properties worth more than £2m.
Charles Haresnape, managing director of Aldermore Mortgages, said the move would bring the tax system into line and increase the stock of available homes.
He told Your Money: “This expansion will reduce the amount of property that companies do buy, which will increase the supply available in the private market. The increase in available properties will give more choice to private buyers and there will be less risk of property prices inflating.”
He continued: “It also makes the tax system fairer for individuals. There’s no reason why companies should get a tax break while individuals don’t.”