Should Stamp Duty be re-vamped?
When you move home there are many expenses involved;
solicitor fees, new furniture, mortgage fees, surveys, deposit and on top of
all that STAMP DUTY. For such a large amount of tax Stamp Duty does not
actually make a huge contribution towards paying for hospitals and schools. The
issue lies with first time buyers not being able to get on the property ladder
and growing families not being able to move up the ladder. It also prevents people
from moving to better jobs and the elderly from downsizing.
Stamp Duty is currently applied on property priced between
£125,000 and £250,000 at 1%, then 3% up to £500,000 and then 4% up to £1million
and finally 5% up to £2million. There is also a higher 7% bracket for the super-rich!
Some people are moving less due to this high tax. Back when
it was introduced in 1993 at 1% on property over £60,000 this was above the
average property price. This then was a fair and relative tax; it is now out of
proportion. If the tax was cut more people would be able to finance moving and
therefore the amount of tax would balance out again. I’m not saying it should
be abolished altogether (although that would be nice) but more fair, so the 1%
begins above the average house price bracket so it serves the same purpose as
when it was introduced.
There is currently a scheme attempting to stamp out stamp
duty. Where you can visit the website and enter your postcode to contact your
MP.
