The Council of Mortgage Lenders has welcomed the announcement by the Chancellor in the Autumn Statement of the reform of stamp duty land tax away from the current slab structure to a marginal system. The CML has long argued for such a reform.
CML director general Paul Smee comments:
“This fundamental reform has been a long time coming, but better late than never. Although there are losers as well as winners, the vast majority of mortgaged transactions will benefit from lower tax as a result of this move.”
CML data suggests that, among mortgaged transactions over the past year, 21.6% were for less than £125,000, 47.9% for £125,001-£250,000, 29% for £250,001-£925,000, 1.1% for £925,001-£1.5 million, and 0.4% for over £1.5 million. The proportion of mortgaged transactions that would pay more tax under the new system is around 1.5%.
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