The Mansion Purchase Tax has been reformed due in part to our recent campaigning.
From midnight on 3rd December, the new rates of stamp duty will only apply to the amount of the purchase price that falls within the particular duty band, making it more like income tax.
In other words, someone buying a house for £200,000 will pay nothing on the first £125,000, and then 2% of the next £75,000, giving them a bill of £1500. Previously they would have paid 1% on the total purchase price, giving them a bill of £2,000.
Thus although the percentage rates appear higher in some cases, the overall charge will mostly be lower
"The British Property Federation (BPF) is urging all political parties to commit to a full revaluation of council tax in their election manifestos in light of research which shows that the council tax system needs to be restored to fairness – an exercise that is not as scary as politicians might think.
The BPF suggests that additional income generated by reform be spent on affordable housing in or near to the areas in which it was raised. This would help areas of the UK, London in particular, to meet affordable housing requirements and maintain a level of diversity that a Mansion Tax would not achieve."
The figures show that a full revaluation would not lead to large amounts of the population being out of pocket, the BPF is urging governments not to shy away from undertaking it.