Rishi Sunak could soon be facing fresh calls to scrap stamp duty completely and replace it with a ‘fairer’ property tax.
More than half of respondents to a new survey – 59% – believe all first-time buyers should be exempt from stamp duty, while 38% of those who took part in the survey think the levy on property purchases should be replaced by capital gains tax on all home sales.
More than 2,000 people took part in the Anthony Ward Thomas Attitudes to Moving survey, with 58% of respondents wanting inheritance tax to be abolished.
Those who took part in the survey were asked a range of questions about their own home moves as well as their opinions on wider issues surrounding the housing market.
Anthony Ward Thomas, founder of Anthony Ward Thomas removals, said: “First-time buyers are the lifeblood of the housing market and we need plenty of them to keep everything functioning smoothly further up the ladder. However, the cost of moving is in danger of running away from them – it’s not just about finding a deposit and having a big enough salary to get the mortgage you need, there are all the other moving costs, such as stamp duty.
“Replacing a tax on buying – stamp duty – with one on selling – CGT – makes a lot of sense. Buyers will already have profited from the increase in value of their home so paying a tax on that, rather than at the point of entry, seems much fairer.”
Which would further compund the problem of under-occupancy at the top end.
CGT would simply freeze the top end of the market instead.
Aunt Milly, 97yrs young, will sit tight in her five bed detached and fund in home care through equity release instead of choosing to sell.
This type of scenario already being a large contributor to the lack of supply.
This isn’t to say stamp duty doesn’t require reform but moving it to CGT is not the fix.
CGT on sale would however promote multi-generational living as more families simply utilise large houses. This, data shows, is good for life expectancy and health. Aunt Milly will choose to share her home with Daughter + Hubby and kids for whom house prices have become daft and they can’t buy.
Aunt Milly will gift the property at the appropriate moment avoiding IHT. The kids will later mortgage the property and gift or use the money to/for Aunt Milly to cover her care costs if she ever needs it.
For removal companies, and the wider house moving market however, this is not so good!
Every person when young has a desire to buy, often people in later life need to be incentivised to sell
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Very ably put Matt
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I’m not sure what this would achieve. Abolishing SDLT would put more money in a buyer’s pocket and push prices up – which would rise in order to fund the new CGT the seller would be liable for so nobody is better off. Also, how retrospective would it be? Most people wouldn’t begrudge paying CGT on a property they have owned a few years and sell for a big profit but what about long term owners? Enter complex taper reliefs, confusion, fear and stagnation in the market.
FTB’s hardly ever pay Stamp anyway.
Why not keep the current system but adjust it to encourage sectors to sell ie downsizers, pensioners etc and increase it to discourage 2nd home owners by increasing the +3% current rate to say +5% – it would help level the playing field.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I can see no benefit in this current market place by removing SDLT for FTB, in many circumstances FTB hardly pay any tax.
For the average UK seller, the biggest cost of moving is to bridge the gap between the selling and eventual purchase price (say £100k extra), closely followed by SDLT. I did a cost of moving exercise last week and our SDLT bill will be £30k….we’re not particularly wealthy, middle aged and 2 half decent jobs.
I do wonder what is going on in Governments heads since 1997, when SDLT has been a tax to hit the middle ranges. Todays property market is worryingly low on available stock, with a large proportion of UK homeowners fitting into the middle age bracket, who see no financial benefit of moving with such a high SDLT bill.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
May I sugges we follow the advice and actions of the best Chancellor of the Exchequer we have ever had Nigel Lawson and REDUCE Stamp Duty?
By REDUCING TAXES he took far MOREIN TAXES than he did when the rate was higher.
Taxes have several poisons the worse being it slows the momentum of activity in any market place.
How about reducing or abolishing Vat on houses moves? Yes just take a minute to calculate how much a seller who is alos a buyer pays out on Vat.
If Government was more careful like the private sector on reducing costs they would have no need for high taxes.
Singapore economy?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register