UK to cut unpopular property tax for nearly all home buyers

LONDON (Reuters) British finance minister George Osborne said he will cut a tax on nearly all property purchases from midnight, removing a long standing grievance of home buyers five months before an election.

A rainbow appears over a housing estate cheap Canada Goose in east London March 3, 2014. REUTERS/Suzanne Plunkett

Presenting his half yearly update on the country finances on Wednesday, Osborne said the Stamp Duty tax would be buy canada goose jacket cheap lowered for the majority of canadian goose jacket home buyers while those buying houses at the top end of the market would have to pay canada goose clearance more.

The increase for the most wealthy could help neutralise the challenge from the opposition Labour party, currently just leading the Conservatives in opinion polls, who have promised to introduce a levy, Canada Goose Coats On Sale dubbed a tax on properties worth more than 2 canada goose coats on sale million pounds.

With house prices rising by nearly 10 percent in the past year, and uk canada goose outlet twice that in London, housing has become a key battleground Canada Goose Parka in the election due next May with many homebuilders being pushed canada goose into higher tax bands.

percent (of people) pay less and canada goose factory sale the whole reform represents a tax cut canada goose uk shop of 800 million pounds per year, Osborne told the parliament.

Stamp duty was previously levied according to the total value of a home or land at a rate that increased in stages, resulting in big jumps Canada Goose Online in the tax paid when a property moved over each threshold.

Under the canada goose black friday sale new plans the tax rate would be graduated canada goose uk outlet and apply only to the part of the property price that falls within that band. The rates of tax would uk canada goose also change.

The tax will start at 2 percent on the portion of a property from 125,000 pounds to 250,000 pounds, 5 percent from 250,001 to 925,000 pounds, then 10 percent up to 1.5 million and 12 percent above that level.

The 12 percent rate compares to the previous top Canada Goose sale level of 7 percent for homes over Canada Goose Jackets 2 million pounds, meaning that canada goose uk black friday buyers of the most expensive properties in Britain, those canada goose outlet costing over 937,000 pounds, Canada Goose Outlet will now pay more.

The Office for Budget Responsibility said the new rules would result in canada goose store a drop of 400 million pounds in buy canada goose jacket stamp duty revenue this tax year, and 800 million pounds next year.

The average property asking price in Britain was below 250,000 pounds at the start of the year, according to property website Rightmove, rising to Canada Goose online just under 270,000 pounds in November.

Head of Taxation at the Association of Chartered Certified Accountants Chas Roy Chowdhury told Reuters that Osborne had taken a significant step to addressing a long standing complaint.

make it progressive is something that we been asking for absolutely years and years canada goose coats and never canada goose clearance sale expected it to happen, he said. a move in the right direction to make it fairer cheap canada goose uk.