Autumn Statement 2014: From slab to slice: shake up of stamp duty sees South East hardest hit

Autumn Statement 2014: From slab to slice: shake ...

The Government says that 98% of house-buyers will be the same or better off under the new system.

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Sean Randall, Head of Stamp Taxes at KPMG, comments:

“The ‘slab’ system has long been criticised for the way in which a single pound’s difference in purchase price can trigger a big jump in stamp duty payable, leading to bunching in the house sales around thresholds.  The ‘slice’ system, as modelled by the Scottish system to take effect next year, should smooth this out and will be attractive to those purchasing dwellings under £925,000. It will take effect from tomorrow subject to a choice where contracts have been exchanged.

“The Government says that 98% of house-buyers will be the same or better off under the new system. But those savings will effectively be paid by those buying in London and the South East, where higher property values produce greater, and sometimes exponentially greater, tax charges.  The new top rate is 12%, in common with the Scotland system, for properties over £1.5 million.  Those with houses in this bracket will pay a greater price and the prime/super-prime residential market will suffer another blow. These changes may in part be prompted by opposition proposals for a mansion tax.”



For further information please contact:

Zoe Sheppard, KPMG Corporate Communications

M: +44 (0)7770 737 994


KPMG Press office: +44 (0)207 694 877

Follow us on twitter: @kpmguk #AS2014

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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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