Kubie Gold - CTA


Chancellor has no plans to move stamp duty to sellers

Posted on Tuesday, August 27, 2019

The chancellor, Sajid Javid has confirmed that he has no plans to move stamp duty from buyers to sellers, following a report that he was considering the idea in an effort to help people onto the housing ladder.

Responding to the report, in The Times, the chancellor tweeted: "I wouldn't support that I know from the Ministry of Housing, Communities and Local Government that we need bold measures on housing - but this isn't one of them."  

The idea of shifting the burden of stamp duty onto sellers is supported by the Association of Accounting Technicians, an accountancy and tax industry group. Its head of public affairs, Phil Hall said: "Switching liability would be considerably fairer, simpler, more effective and cheaper than the current stamp duty regime. [It] would remove every single first-time buyer across the country from stamp duty liability while crucially also helping those already on the property ladder to move up."

However, others believe that sellers would inflate asking prices to cover the tax. And, while the move would cut costs for first time buyers or those moving to a larger property, it could deter others from downsizing, disproportionally affecting older people.

In the interview with The Times, Mr Javid hinted at tax changes, saying: "I'm a low-tax guy. I want to see simpler taxes." However, he has refused to give details of these changes before the coming autumn budget. It is not yet known whether the budget will happen before 31 October, when the UK is due to leave the EU.

In England stamp duty land tax is currently paid by buyers, when a home is sold for £125,000 or more. First-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.

Read more about this story on the BBC website.