Overnight on Wednesday Mr Osborne imposed a more progressive tax that operates similarly to income tax, with buyers paying no tax on the first £125,000 of the property value, 2 per cent on the portion between £125,001 and £250,000, 5 per cent on the next portion up to £925,000, 10 per cent up to £1.5m and 12 per cent above that. The reforms aim to address the distortions of the old system, in which sales bunched just below the thresholds as people tried to avoid incurring a higher rate. Many properties were sold at £250,000 for duty of £2,500, the Treasury said, but it was “rare” for properties to be sold for £251,000, where they incurred £7,530.
Posted on: Mon, 08 Dec 2014 17:27:26 +0000
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