A V Rillo & Co and stamp duty
- September 30, 2014
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Like other conveyancing firms, A V Rillo & Co will ensure that the correct stamp duty is paid on the house purchases the company facilitates.
What is Stamp Duty? – How it adds to A V Rillo & Co costs
Stamp duty is an ancient way of raising revenue, having been begun in the United Kingdom in the seventeenth century as a way of financing war against France. Nowadays, it mostly applies to property transactions, such as those handled by A V Rillo & Co.
A V Rillo & Co and property taxes – the cost of house purchase
From time to time, stamp duty thresholds are raised to take account of house price inflation. However, there is inevitably a time lag, and nowadays virtually all the house purchases handled by A V Rillo & Co in London will incur stamp duty. An exemption for transactions in Disadvantaged Areas was abolished in April 2013, so current A V Rillo & Co clients cannot claim this either, </h2>
Stamp duty thresholds and A V Rillo & Co fees
A V Rillo & Co rarely handle London house purchases below the stamp duty threshold, which currently stands at £125,000. The lowest band, on properties priced between £125,001 and £250,000, is charged at 1.25 per cent of the purchase price. The next band, from £250,001 to £500,000, is charged at 2.5 per cent, a substantial sum for most people. With house prices at their current high levels, most A V Rillo & Co clients will have to pay this tax at this rate at least, in addition to their other costs.
A V Rillo & Co, stamp duty and political pledges
At the 2007 Conservative Party Conference in Blackpool, the then Shadow Chancellor, George Osborne said that a future Conservative government would abolish Stamp Duty for first-time buyers on properties costing up to £250,000. However, this pledge was not honoured by the coalition government which took power in 2010, though the 2010 budget did end stamp duty on homes under £250,000 for first-time buyers for a two-year period. In the same budget, the Chancellor introduced a new 5 per cent rate for properties costing over a million pounds. These are, of course, house purchase expenses over which A V Rillo & Co has no control.