Tory leadership hopeful Boris Johnson wants to make sellers pay stamp duty instead of buyers.
He hopes the change could see the Treasury pick up an extra £700 million year as the move would see the first-time buyer exemption scrapped.
Johnson has pledged to include the measure in a tax and spending review for his first Budget in November should he become prime minister.
Johnson has already talked the stamp duty switch over with the Association of Accounting Technicians (AAT), which came up with the idea.
Phil Hall, AAT head of public policy and public affairs, said: “The AAT is naturally pleased that Boris has agreed to look at our long-standing proposal to switch stamp duty liability from the buyer to the seller. This will save the taxpayer £700 million a year by rendering first time buyers’ relief redundant.
“It will also protect the £9 billion of revenue stamp duty generates as it will still be paid in full, simply by different people. It is also much more progressive as it will be paid on the lower priced property being sold rather than the higher priced property being bought.”
Hall also revealed that Johnson has asked for more details about the proposal and that he could scrap stamp duty on homes valued under £500,000.
Stamp Duty Land Tax is paid by property buyers in England – similar taxes apply in Scotland and Wales.
Landlords pay stamp duty at an enhanced rate on homes to rent out valued at £40,000 or more.
Stamp Duty Land Tax rates
|Property value||Standard rate||Enhanced rate|
|Up to £40,000||0%||0%|
|£40,000 – £125,000||0%||3%|
|£125,000 – £250,000||2%||5%|
|£250,00 – £925,000||5%||8%|
|£925,000 – £1.5 million||10%||11%|
|Above £1.5 million||12%||15%|
Source: HM Revenue & Customs