Stamp duty capital of Britain
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.