A new stamp duty tier should be introduced by the Government to encourage buyers and increase property transactions according to Beresfords estate agents.

The new tax tier would see a band created between £250,000 and £375,000 which would have a 2% stamp duty land tax (SDLT) charged.

Paul Beresford, Managing Director, Beresfords, said: “A further tier of 2% SDLT between £250,000 and £375,000 could substantially increase the number of transactions as buyers are encouraged by the tax savings. This would be consistent with the other 1% stamp duty increments below £1m and remove the anomaly of the biggest jump being at the bottom of the property scale where it triples from 1% to 3% at £250,000.

“The Government would see further economic benefits with an increase in levels of property related business and subsequent tax revenue collection, including higher stamp duty revenues from further up the property chain which would offset any subsequent shortfall in revenue in the lower band. Currently a purchase price of £250,000 has SDLT at 1% (£2,500) and £290,000 3% (£8700) which is plainly wrong. A 2% threshold on purchase price of £290,000 equals £5,800, saving nearly £3,000.”