Stamp Duty – a Tax Under Scrutiny as Budget Beckons
Living in the most expensive and densely populated part of the UK as the capital and the South East, the subject of property is never far from many people’s minds.
Therefore, a call on the Chancellor of the Exchequer to scrap Stamp Duty to boost the economy is of great interest to more than just ourselves, as solicitors dealing with conveyancing in London.
Philip Hammond must scrap stamp duty on property sales to solve the housing crisis and boost the economy, claims respected think tank, The Adam Smith Institute.
The organisation said the tax, which raised £11.7billion last year stopped people moving jobs and kept them in houses too large for their needs.
It said that penalising older people for downsizing, stamp duty makes the number of larger homes on the market for growing families even smaller.
The Adam Smith Institute called on Mr Hammond to cover the cost of scrapping stamp duty by raising council tax on the most expensive homes.
A spokesman for the institute said Britain’s productivity problem is in large part a mobility problem as many cannot move to where the best jobs for them are because the houses aren’t being built, and it’s exacerbated by stamp duty keeping older people in family homes that are too large for them.
Interestingly, this comes on the back of a report earlier in the year by the London School of Economics and the VATT Institute for Economic Research saying the rate of home moving would be 27 per cent higher without stamp duty.
Currently the rates of stamp duty are:-
No stamp duty on property under £125,000
- £125,000 – £250,000 is 2%,
- £250,000 – £925,000 is 5%
- £925,000 – £1.5m is 10%
- Over £1.5m is 12%
It doesn’t take long to work out that it is a sizeable amount of money to find for people caught up in property transactions.
Whilst we suspect this is something that will not happen, we welcome all pro-active attempts to help the economy.
It certainly is a unique time we are living in and anything that can boost people’s lives is to be welcomed.
If you are thinking of moving home and need help and advice regarding stamp duty, or any other aspects of conveyancing, please call us at Pindoria Solicitors, we are happy to talk through your situation with you.