£2 million homes tax could prove boost for Midlands - CPBigwood

£2 million homes tax could prove boost for Midlands - CPBigwood

Tom Dennes, head of CPBigwood’s Country Homes division, said: “The rise in Stamp Duty Land Tax to seven per cent on homes changing hands at over £2 million could perversely prove a bonus for the Midlands.

“It will really hurt the South-east and to that extent discriminates against those who work there.

“They now face the choice of paying the extra or moving to where houses are less expensive, and commuting. And, eventually tied in with HS2 high speed rail, that could see more executives choosing the Midlands to live.”

Mr Dennes said it remained to be seen whether people would look to get round the rise by, for example, exchanging contracts for £1.95 million, and perhaps agreeing a separate deal for the purchase of extra land.

He pointed out that the minimum saving would be £40,000 by purchasing at less than £2 million further away from London.

“If you assume that an annual rail season ticket may cost £5,000 then that would pay for eight years of commuting,” he said.

As for the Government’s clampdown on Stamp Duty avoidance – the purchase of houses through offshore companies – he described it as a “very welcome” move.

But, he added, only small numbers were thought to be involved in such practices.