Stamp Duty to hit homes

ALMOST three in five homes in the North-West sold in 2012-13 will be subject to “punitive” Stamp Duty in five years time, new research by the Taxpayers’ Alliance has shown.

In Oldham, the number of homes which will have to pay stamp duty will grow from 29 per cent this year, to 45 per cent in 2017/18.

The findings are based on property price growth forecasts over the next five years by Savills Research and implies a huge increase in the number of homes which will be subject to increased rates of Stamp Duty.

Stamp Duty is charged when a property is bought for more than £125,000 and is applied at a rate of 1, 3, 4, 5 or 7 per cent of the total purchase price, depending on the price band of the property.

It is also estimated that 65 houses in the borough will rise to the 3 per cent band in the next five years, leading to bills of at least £7,500.