Homebuyers brace for £17billion stamp duty hit Business

Since the start of the pandemic, house prices have jumped nearly £39,000 after a space race and demand has been buoyed by the government’s stamp duty holiday, according to newly released data from Halifax.

However, with the return to normal stamp duty rates, soaring prices mean that many sellers will find their homes have entered a new tax bracket this year. A typical house worth £278,123 would pay £3,906 in stamp duty, according to Which, the consumer magazine.

It came as the Confederation of British Industry (CBI) predicted business investment would skyrocket by 20% if the Chancellor opts for the ‘grand prize’ of permanently cutting business tax bills after the end of the “super deduction” next year.

The Chancellor promised in the spring statement to consult with business leaders on a new incentive scheme to boost investment after the end of the ‘super deduction’, which takes 130% of investment out of taxable income .

CBI chief executive Tony Danker told the Telegraph: ‘The idea that every year you could deduct 100% of your business investments from your tax bill immediately: all our research for companies looking at the options after the super deduction indicate that this will give you the biggest move for your cash.

“It could lead to a 20% increase in business investment, so I think that’s the best price.”