It has been reported that some major changes to the way that properties are taxed could come into play with Boris Johnson as Prime Minister.
Prime Minister Boris Johnson has revealed that he plans to abolish the tax altogether on properties below the value of £500,000. He has also met with AAT, the Association of Accounting Technicians to discuss more radical ideas for home sellers.
Boris Johnson feels that the housing market is locked because the high stamp duty costs put buyers off. Based on this he plans to cut these high stamp duty costs for the buyer. It has also been discussed that he may pass this tax onto the seller of the home, instead of the buyer. This would be a unique way of cutting stamp duty costs for first time buyers, without it affecting the government. It would also make it more possible for buyers to upsize their homes as the tax bill would be lower and they could afford a larger, more expensive property.
It is reported that this could save the taxpayer around £700m as the First Time Buyer Relief would become redundant. However it would still protect the £9 billion of revenue that stamp duty generates as this would still be paid in full, just by different people. In this case the seller and not the buyer.
However, it is not great news for everyone. Those people looking to downsize their homes will be left having to pay more. In fact their stamp duty bill could be significantly higher. AAT argues that in the majority of cases downsizers will have little or no mortgage to pay and will have significant equity. AAT feels that these homeowners are better placed to pay that little extra, unlike first time buyers who are often in the younger generation.
If you are looking to sell your home or buy a home then contact us directly. We have a wide selection of homes and buyers on our books and can help you with any changes as and when they arise in the process of buying or selling your home.