The government is being urged to scrap the “anachronistic” Stamp Duty Land Tax by a property sector coalition. The ‘1808 Coalition’ feels that Stamp Duty should be reformed because its ‘slab’ structure tends to unfairly distort the UK’s property market. The stamp duty is like a “relic” belonging to another age that fails to recognize the modern British property market.
The 1808 Coalition formed by the NAEA and ARLA addresses the issue of “modernizing” Stamp Duty in the run-up to the Pre-Budget Report.
86 per cent of the UK’s estate agents feel that the tax is unfair. 81 per cent of agents believe that if the Government makes an announcement to reform Stamp Duty, there would be a very positive effect on the beleaguered property market. In fact, 91 per cent of estate agents surveyed feel that the current Stamp Duty “holiday” for properties worth £175,000 or lower which is due to expire imminently should be extended.
Stamp Duty prohibits entry of many first-time buyers and prevents those looking for a step up the property ladder. Those investing in buy-to-let portfolios are unfairly penalised and have to pay Stamp duty on bulk price whereas individual buy-to-let investors pay a lower rate on the individual unit price.
