PROPOSED STAMP DUTY CHANGES

Since Stamp Duty exemption went back down to £125,000 as from the 1st January 2010, this has most definitely had a negative impact on the first time buyers mentioned above. This is an issue that was recently discussed in the House of Lords and as a result of this the Royal Institute of Chartered Surveyors has put forward a new Stamp Duty proposal which briefly states that Stamp Duty should not be charged for first time buyers and older people downsizing. At the same time the RICS propose that the higher rates should only be paid on the slice above the threshold. Therefore, one would pay on a house sale of say £350,000, 1% on the first £250,000 and 3% on the difference between £250,000 and £350,000 as opposed to 3% on the entire £350,000. The above proposals were in fact endorsed at a House of Lords debate but unfortunately we are some way from this being introduced into our own tax system yet. But what a very good idea!