A threshold payable at between £250,000 and £375,000 would encourage more property transactions which in turn would fill the £23m revenue gap created by the extra tier, said Beresfords.
By creating a new 2% threshold for properties between £250,000 and £375,000 an estimated 7,628 buyers would save up to £3,750.
Paul Beresford, managing director, Beresfords, based in the South East, said: “The cost factor of Stamp Duty has been underlined by the 40% rise in first time buyer transactions since the beginning of the year as this group of buyers rushed to beat the exemption deadline at the end of this month. By creating a further tier at £375,000 of 2%, the government would encourage sales within this bracket which would benefit a host of allied industries from white goods sellers to surveyors.”
The Stamp Duty exemption for first-time buyers paying under £250,000 is due to end this coming Saturday on 24 March. Figures from largest mortgage lender, the Halifax suggest 150,000 buyers benefited from the exemption over the two-year holiday.
Unless the government chooses to extend the tax holiday, considered unlikely, SDLT will be payable again at 1% from £125,000 up to £250,000. Next, the tax rises in 1% increments to 4% on properties worth £500,000 and 5% on properties worth over £1m.
The Liberal Democrats have long argued for a mansion tax on multi-million pound properties in exchange for their political support to cut the top rate of tax. This could be implemented by adding an extra tier above the 5% Stamp Duty Tax on properties worth £1m and above.
