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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Latest Comments

warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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SecomTech
SecomTech 04 Apr 2017

...and not one mention of the rules on PERMITTED DEVELOPMENT!!! Unless you have studied the plans you will not know...It's probable a high proportion would not need planning permission...BUILDING Control...

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Jonathan
Jonathan 03 Apr 2017

That's a very interesting study indeed. There is no doubt that new services and web apps such as Wonego.com in the UK or Roomster in the US will change the way people look for a flatmate, and that tenants...

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MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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