You are here: Home - Household Bills - News -

Tax association urges changes to Stamp Duty

0
Written by:
08/09/2017
The UK's leading tax association has called for home sellers, rather than buyers, to pay the cost of Stamp Duty when selling a property.
The Association of Accounting Technicians (AAT) said it was unrealistic to scrap Stamp Duty given the vast sums it raised for Treasury, but that making the seller pay would be more practical.

In its Budget submission to the chancellor, AAT Head of Public Affairs & Public Policy Phil Hall said: “It’s widely accepted that Stamp Duty adds a burden to any homeowners seeking to move – especially first-time buyers – because they must pay the tax as an immediate upfront cost together with finding a deposit, surveyors and solicitors fees and so on.

“This stunts mobility, impacting on employment and productivity as well as reducing the supply of new homes, which adds to the affordability crisis. Switching liability to the seller would be a relatively simple way of solving these problems.”

Key concerns

Hall directly addressed two of the key concerns with the proposal; that sellers would increase their sale price and the effects on older people seeking to downsize.

“In 2014 it was suggested that sellers would pocket any Stamp Duty savings realised by changes to the slab/slicing methods of payment but this didn’t prove to be the case. Likewise I doubt sellers will add the whole cost on to the asking price if they have to pay Stamp Duty. Even if they do, the buyer will still benefit from a lower upfront cost as no tax is payable,” he said.

Where downsizers were concerned, Hall added: “In most cases downsizers will probably have no mortgage and will have significant equity. They’re likely best placed among all homeowner types to pay a little extra, certainly better placed than first-time buyers.

“It could also be argued that once this has been in place for a few years, downsizers are likely to have benefitted from the seller pays regime to have got to where they are on the ladder.”

AAT suggested changing the liability for Stamp Duty would:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK Is this actually (very sadly) a bad news story @emmalunn? If the number of people qualifying for HTS i… https://t.co/bbWviJHfXx
  • RT @BoonBrokers: “Obviously, these practices are totally unacceptable and we would hope that most estate agents would be as horrified as us…
  • “Obviously, these practices are totally unacceptable and we would hope that most estate agents would be as horrifie… https://t.co/s8olBmyH9G

Read previous post:
uk shares
UK economy ‘treading water’ says BCC

The British Chambers of Commerce has issued a gloomy prognosis on the UK economy, saying it is ‘treading water’.

Close