British Property Federation posts blog with suggestions for stamp duty reforms

September 15, 2019
Share this Post: 

A British Property Federation blog has proposed three unique suggestions for stamp duty as the parliament works out the kinks in how to fulfill its promise to reform the tax.

The blog starts from the premise that SDLT is currently leading to market mayhem, with a by-product being that homes “designed … with love and attention” are now becoming something akin to Dr Frankenstein’s Monster as they have extensions and large scale refurbishments undertaken as their owners try to avoid moving costs. 

So the blog suggests three very radical alternatives:

1. Net Stamp Duty: SDLT would only be charged on the difference between current value of property and new value of property. “It would encourage liquidity. It would free up more cash at the point of purchase for improvements and refurbishments. It would allow the workforce to be more flexible and switch between locations. No SDLT would be payable on people downsizing” suggests the article. 

2. Allow Stamp Duty to be paid over time: “It could be linked to tax codes, and so included in PAYE and therefore would not need a separate collection mechanism to be monitored. SDLT paid, however, is not an issue for the majority of buyers as the SDLT can be rolled up as part of a mortgage, providing there is sufficient equity to pass affordability tests.”

3. A Lifetime Allowance: The blog admits this could be complex and may penalise those who are obliged to move home often, but “this would support first time buyers and second steppers.”

Read more here

Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.

Blue Banner 899 Euros Madrid Ppw 2019

September 15, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Investment Roundup 14Mar
Funding and Investment Roundup: Adevinta, JustMoveIn, REA Group, Tomo Mortgage

This week's funding and investment roundup starts with the now not-so-surprising news that Adevinta is selling...   Europe: Adevinta sells...

Read More
Product Update 2025Mar14 1
Product and Services Roundup: Domclick, Samolet, Homele, Dubizzle, Jitty

This week's product roundup has some interesting news from two Russian businesses...   Europe: Domclick launches house building services and...

Read More
Rightmove Row Of New Housees 2
Rightmove Appoints Amanda James as Non-Executive Director and Audit Chair

Rightmove has appointed Amanda James as a non-executive director (NED) and chair of its Audit, Nomination, and Corporate Social Responsibility...

Read More
Shutterstock 1118947796 3
Baltic Classifieds Group Acquires Real Estate Valuation Platform Untu.lt

Baltic Classifieds Group (BCG) has acquired Lithuanian real estate valuation platform Untu.lt for an undisclosed sum, expanding its portfolio of...

Read More

Editor's Pick