Calls For Stamp Duty Cut

Calls For Stamp Duty Cut.

More tax advisers are calling for George Osborne to cut Stamp Duty ahead of his Autumn Statement.  These reforms are not expected to be in the Chancellor's statement but the issue has again been brought up.

Calls are being made for Stamp Duty to be cut on home valued between £250,000 and £300,000 as the £250,000 is now a ceiling that is affected the sale of many homes and preventing them being sold.

These new changes would cost the government around £150m.

Research from PwC showed that since 2010 the government gained £16.6bn in Stamp Duty taxes despite that the number of transactions are falling.  Research also showed that cutting tax by 3% to 2% and would amount to just under 1% of the total of Stamp Duty raised.

Comment

Stamp Duty is a wealth tax.  Most homes are already above the £150,000 stamp duty start point and the £250,000 3% rate is a real barrier to curb house price growth.

Will the Chancellor increase stamp duty thresholds?  We think not just yet.  We expect the Autumn statement to encourage more business growth and employment and less for property as the property market is bouyant as it is.

Related:  Stamp duty rates