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
So basically tax us twice on properties we’ve already bought with the enhanced duty on? And they rely on us to provide the housing they can’t, yet make it more difficult and more expensive at every turn. Do these idiots not realise it just forces rents up for those least able to afford it?
This criticism doesn’t add up. No one will pay tax twice unless they never ever buy a property again in the future.
So I paid SDLT when I bought it , now I will pay it again when I sell it. It doesn’t seem very fair or will they not charge because I have already paid. Surely they don’t want us to pay the same tax twice on the same property.
We are at that stage in life were we are planning to downsize. This change in who is paying the tax only benefits the government in reducing their tax losses in the first time buyer give away. We would prefer that such tax benefits to help parents that want to help their siblings buy/first time buy. This change to sellers paying also will reduce the amount of inheritance tax. They should think again. Hans.