Stamp Duty Threshold Doubled
Home buyers helped by rise in stamp duty threshold
16th March 2005
Chancellor Gordon Brown has doubled the threshold for Stamp Duty to £120,000, in a move designed to make life easier for first time buyers.
Stamp duty is a tax on buying property which used to kick in at the old £60,000 threshold. As property prices have risen, more an more buyers have had to pay the tax, presenting another obstacle to the already struggling first timer.
However, reaction to the move has not been totally positive, with observers pointing out that the change will have little effect in the areas with highest property prices. For example, fewer than 5% of properties in London would be below the new limit.
The move will be pad for by the abolition of commercial property duty relief, which was introduced in 2002 to encourage businesses to move to deprived areas.
Read More: BBC Report
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