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Largest Stamp Duty savings since reform enjoyed by South West

  • 29/02/2016
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Largest Stamp Duty savings since reform enjoyed by South West
Home buyers in the South West have enjoyed the largest saving in Stamp Duty Land Tax (SDLT) following reform in December 2014, spending £131m less under the new regime, government statistics reveal.

The average house in the South West is priced at £261,000. Since the SDLT was changed from the old slab structure whereby homebuyers paid one rate of tax on the whole property price to a slice system similar to income tax, South West buyers have saved, on average £4,800, on each residential transaction.

Homebuyers in the North West saw the second highest saving in SDTL at £90m equating to £700 less for the average house priced at £182,000.

In total, 780,000 homebuyers have made an estimated saving of £657m during the 12-month period from the 4 December 2014 to 5 December 2015.

The government’s research showed transactions at the top end of the market, exposed to a higher tax bill under the slice structure, have remained constant while receipts for homes costing more than £1m went up by 15% across the year.

When the new structure was unveiled, Chancellor George Osborne said 98% of people eligible to pay Stamp Duty would see a reduction in their bill.

Osborne said: “I am determined that this government will continue to take bold action to support a homeowning democracy.

The Chancellor said the statistics coincided with analysis from the International Monetary Fund (IMF) which found that the reform has “reduced distortions and is a step in the right direction”.

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