Budget: Miras/Stamp Duty
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE ABOLITION of mortgage interest tax relief (Miras) from April 2000 will cost pounds 17.37 a month for homeowners with borrowings of pounds 30,0000.
The cut is equivalent to a 0.35 per cent interest hike for a typical borrower. But some experts predicted it would go largely unnoticed at a time when interest rates have fallen several times, by up to 2 per cent, in the past six months.
Brokers argued this week that now the final tax breaks on mortgages are to be removed, it would strengthen the impetus for early repayment of home loans.
Meanwhile, some lenders have quietly welcomed the demise of Miras, already eroded to 10 per cent. They will now be freer to redesign the traditional 25-year loan, mixing other kinds of credit more flexibly with the homeloan package.
Less welcome is the increase in stamp duty, which will hit residents of housing hot spots throughout Britain, and will causing hardship to those living in London and the south-east of England.
From next Tuesday, homes above pounds 250,000 will incur 2.5 per cent in stamp duty, 0.5 per cent higher than at present. Similarly, the rate for those over pounds 500,000 rises to 3.5 per cent. If you have already exchanged contracts, the old rates will apply.
Property below pounds 60,000 will continue to be free of stamp fees on purchase. Up to pounds 250,000, the current 1 per cent will be levied.
Teresa Hunter
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments