Should stamp duty be a buyers or sellers tax?

Should stamp duty be a buyers or sellers tax?

The Association of Mortgage Intermediaries believes work could be done to review whether stamp duty could become a tax paid by the property seller rather than buyer.

According to the AMI, it has heard anecdotally that older homeowners have the appetite to downsize but either cannot find appropriate housing in the right location or delay moving due to the "disproportionately high costs involved".

In its Quarterly Economic Bulletin, the AMI says that "stamp duty is the lion’s share of these costs, particularly in London and the South East where house prices have rocketed".


Another consideration would be whether sellers over state pension age could make one sale and purchase and defer the final stamp duty payment until final sale of that purchased property.

The AMI admits "this is unlikely to be agreed in the short-term given pressure on UK finances but could have a significant impact on buyers’ affordability and attitudes in the long-term and should therefore not be thrown out as unrealistic" and is also proposing that stamp duty be made a regional tax to allow it to "better reflect local housing market dynamics" and free up those who want to move home but cannot afford the tax bill to do so.

The proposals echo recent calls from Yorkshire Building Society, who urged the Government to consider reforming stamp duty land tax to make it paid by sellers. With a focus on first-time buyers, YBS says change would save those getting onto the property ladder an average of £3,791, with Londoners saving the most at an average of £13,171.

Its data shows that those moving up the property ladder would also stand to benefit, saving £4,093 on average, rising to £9,762 in London.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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Mark N.
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