Daily Mail

Stamp duty capital of Britain

- A.cooke@dailymail.co.uk

HOMEBUYERS in London typically pay 47 times more stamp duty than those in the East Midlands, according to Coventry Building Society.

An average home in the capital is worth £543,099, meaning a buyer pays £14,654 in land tax. But those buying in the East Midlands pay £307 on a typical home worth £256,206. Jonathan Stinton, from Coventry BS, says: ‘A system where people can pay up to 47 times more tax than others — on something which is only twice as valuable — is clearly flawed.’

The difference­s are due to rises in stamp duty tax thresholds last September.

Homebuyers previously paid the duty on properties worth more than £125,000 — but changes mean the first £250,000 is now tax-free. The next £675,000 is taxed at 5 pc, up to a value of £925,001, after which point it increases to 10 pc. The thresholds are in place until March 2025 and reduce the amount of stamp duty on an averagepri­ced home from £5,767 to £3,303.

Homebuyers in London now pay £4,509 more in stamp duty than they would have done in 2014, when the previous thresholds were set. But those buying a typical property in the North-East, North-West, and Yorkshire and The Humber do not pay any tax on their property purchase.

First-time buyers pay no stamp duty on properties up to £425,000 in value.

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