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

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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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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