Stamp duty cliff edge knocks £10,000 off thousands of homes

Tim Wallace
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THOUSANDS of home owners have had to slash the price of their house to below £250,000 to get a sale because of the impact of stamp duty, according to a report out today from London Central Portfolio and the Cass Business School.

Stamp duty jumps from one per cent to three per cent at the £250,000-mark – but is charged on the full value of the property, leading to a sharp jump in the tax bill at that level. As a result of the jump, few homes are sold at between £250,000 and £260,000 – forcing sellers to cut their price.

The report estimates 13,866 people per year are forced to sell their property at a discount of £10,000, as buyers cannot pay the thousands of pounds extra in tax.