Buyers' tax fear.PEOPLE hoping to buy their first home are being put off because of a tax charge. Stamp duty Stamp Duty An ad-valorem or flat rate charged upon certain documents. Notes: This is an extra charge placed on documents. See also: Ad Valorem Tax Stamp duty Applies mainly to international equities. must be paid on all properties sold for more than pounds 60,000. And one in four potential homebuyers says the tax is a real obstacle to getting on to the property ladder This article is about the real-estate term. For the reality television show, see Property Ladder (TV series). The property ladder is a term widely used in the United Kingdom to describe an individual or family's lifetime progress from cheaper to more expensive , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Alliance & Leicester. The lender's research reveals that two thirds of first-time buyers have not considered stamp duty and a third don't even know what it is. "First-time buyers need to do their sums and know the total cost of buying a home," warns the bank's Stephen Leonard. "Stamp duty is a sizeable proportion of the overall cost." The tax is levied at 1 per cent for homes worth between pounds 60,001 to pounds 250,000, 3 per cent between pounds 250,001 to pounds 500,000 and 4 per cent above that. The average first-time buyer spends pounds 125,502, according to figures from the Nationwide, meaning a tax charge of pounds 1,255. |
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