{"id":5802,"date":"2019-12-21T16:54:56","date_gmt":"2019-12-21T15:54:56","guid":{"rendered":"http:\/\/www.hip-consultant.co.uk\/blog\/?p=5802"},"modified":"2021-06-02T17:35:13","modified_gmt":"2021-06-02T16:35:13","slug":"what-are-the-conservatives-plans-for-stamp-duty-123","status":"publish","type":"post","link":"http:\/\/www.hip-consultant.co.uk\/blog\/what-are-the-conservatives-plans-for-stamp-duty-123\/","title":{"rendered":"What are the Conservative’s plans for stamp duty?"},"content":{"rendered":"\n

With a brand-new majority government, the\nConservative Party now has the mandate to carry out some sweeping reforms and\nthis could well include an overhaul of stamp duty. <\/p>\n\n\n\n\n\n\n\n

Last summer, Boris Johnson repeatedly spoke about the possibility of reducing the Stamp Duty tax<\/a>. However, these plans were not a part of the Tory manifesto this autumn, but fiscal experts believe the long-awaited reforms are more likely under this government than at any time. Investors are keen primarily because lowering the costs of transactions will trigger the property market in a highly positive way – something the Tories will be in favour of doing, especially to alleviate the effects of Brexit uncertainty. <\/p>\n\n\n\n

The impact of any stamp duty reform would\nbe mainly felt in expensive locations such as London, areas where more property\nowners were impacted by the amendments introduced nearly six years ago when the\ntax was last changed. <\/p>\n\n\n\n

Who will be affected by the proposed changes to stamp duty?<\/h3>\n\n\n\n

The most likely change to stamp duty is likely to apply to overseas buyers<\/a> who will pay a stamp duty surcharge of 3 percent. This is believed to apply to companies and individuals buying properties in England alike. Boris Johnson is reportedly interested in refuting claims that he is the leader of the party of the wealthy and to keep new voters on-side. The money raised from the changes – estimated to be circa \u00a3120m will be used to combat the capital’s homelessness crisis. <\/p>\n\n\n\n

The Conservative Party claims that the\nmeasure \u2013 predicted to affect 70,000 transactions annually in England alone \u2013\nwould deter foreign investors buying properties and leaving them empty or as\nrental properties commanding over inflated prices. Recent research revealed\nthat 13 per cent of new-build London properties were purchased by non-UK\nresidents from 2014 to 2016<\/p>\n\n\n\n

The Treasury chief secretary, Rishi Sunak,\nsaid he would like Britain to remain open to people arriving to live, work, and\nsettle down “in this great country\u201d. However, the minister added a note of\ncaution, saying that evidence strongly shows that enabling increased demand to\nhousing already in limited supply will inevitably inflate house prices.\nIntroducing a higher rate of stamp duty for foreign buyers will, therefore,\nhelp to resolve this issue and could hopefully raise much-needed funds for\nrough sleepers. <\/p>\n\n\n\n

This policy was initially announced by\nTheresa May in 2018, but following a consultation, is now on the road to being\nformally adopted.<\/p>\n\n\n\n

The surcharge would be imposed in addition to an existing higher rate of stamp duty<\/a> on buy-to-let and second-home. This was brought in gradations in April 2016: 3 percent for homes worth less than \u00a3125,000, 5 percent for homes valued between \u00a3125,001 and \u00a3250,000, 8 percent for properties deemed to be worth between \u00a3250,001 and \u00a3925,000, 13 percent for homes up to \u00a31.5 million \u2013 and 15 per cent for the tiny percent of properties worth more than that.<\/p>\n\n\n\n

These changes mean an international non-UK\nresident purchasing a property valued more than \u00a31.5m will need to pay a new\nstamp-duty rate of 18 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"

With a brand-new majority government, the Conservative Party now has the mandate to carry out some sweeping reforms and this could well include an overhaul of stamp duty.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[631,52,30],"tags":[],"class_list":["post-5802","post","type-post","status-publish","format-standard","hentry","category-housing-policy","category-property-conveyancing","category-housing-market"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5802"}],"version-history":[{"count":3,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5802\/revisions"}],"predecessor-version":[{"id":5805,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5802\/revisions\/5805"}],"wp:attachment":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5802"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}