Javid Rebuffs Stamp Duty Paid By Seller

Back in July, trade body the Association of Accounting Technicians (AAT) discussed and encouraged the idea by Boris Johnson that if elected he wanted to see:

• Sellers paying Stamp Duty Land Tax rather than purchasers.
• No Stamp Duty to be paid for house sales under £500,000.
• The highest rate threshold to go back down from 12% to 7%.

A recent interview with the Times and a subsequent tweet heard that Sajid Javid, the newly appointed Chancellor of the Exchequer would not support this option.

In the tweet Javid commented: “strong decisions need to be made on the housing market process, but changing the stamp duty onto the seller’s onus is one I don’t support”

Back in September 2018 the AAT published the report ‘Time for Change’ with details of proposals as alternatives to tax rises.  The change to the stamp duty being paid by the seller was to increase the amount of house purchases and reduce the costs for home buyers, but not down sizers and make available more smaller properties for first time buyers.

Comment

We have already suggested that this would not work as it is technically a 'sales tax' or an additional wealth/capital gains tax on private homes.  We believe that sellers would simply increase their selling price to accomodate additional taxes in a time when people are struggling to get on the ladder.  Each generation has had its own issues with getting on th property ladder, saving rather than having the latest tech, new cars and lavish international holidays were not even thought of by the older generation when saving for a home yet younger people appear to want it all.