London, is held responsible for forty five percent of the total raised amounts of tax, with even modestly priced homes within the capital, facing charges of thousands of pounds. The wider area of London, along with the southeastern portion of the area, and the eastern portions of England, account for eighty six percent of the duty charges. These figures are being known as mansion taxes.
They were given this name, due to the fact that the wealthy individuals incur substantial charges whenever they choose to purchase a piece of property that is over a certain size. With the current system that is being used, home buyers are required to render one percent of what the home that they are purchasing is worth. Homes that are in the £125,000 to £250,000 ranges have risen three percent, while homes that are over £250,000 have risen four percent, and homes that are over £500,000 have seen an increase of five percent. Properties that are within the £2m range, have seen an increase of seven percent in stamp duty charges.
Average housing prices have surged over the past couple of years. In many places throughout London, the prices that are being asked for, are higher than the prices that the residences sold for back in 2008. As a result of the increasing costs of purchasing a piece of property, residents are being forced to also render higher levels of stamp duty for their purchases.
Just this past year, there were 723,829 pieces of property that had more than a quarter liable rate for stamp duty charges, of three percent or higher. In London, sixty five percent of the transactions that were performed during 2012, carried a levy of three percent or higher. With these deals equating ninety seven percent of the stamp duties that were collected within the capital.
The TPA has decided to produce these figures, in an attempt to be able to launch their Stamp Out Stamp Duty campaign. This campaign calls for a cut in the levies that are being put against individuals purchasing residences within London. The campaign has argued that these taxes are acting as a road-block for home buyers that want to purchase homes within the area.
Ministers have failed to do anything in order to ease the burdens that stamp duties have caused on prospective home buyers. This tax is in many ways an unjust double tax, which is getting in the way of prospective first time homebuyers being able to purchase properties, or even consider moving out of their present properties. Things have been made worse for any individual who wants to purchase a new home.