A Better Future

Stamp Duty Reform believes first time buyers should not generally be burdened with Stamp Duty, and that for everyone else, the tax should be smoothly progressive.

Our campaign is for the first £250,000 to be free of tax, and that a flat rate of 3% should be applied to the amount over this level.

Example amounts of SDLT payable follow:

Purchase Price Stamp Duty Payable
£125,000 £0
£250,000 £0
£500,000 £7,500
£1,000,000 £22,500
£2,000,000 £52,500

2 thoughts on “A Better Future

  1. I don’t consider this to be smoothly progressive. You still have bands set arbitrarily at extreme increments…? Surely a system of more evenly distributed bands with smaller relative percentage increments would pave the way to a more fluid and sustainable housing market. The problems seem to be firmly rooted in the fact that the bands are set too widely apart, being arbitrarily based on one particular moment in the history of house prices. Your “Better Future” example, doesn’t seem to tackle the fundamental problem here.

    Surely a better system would be founded in an initial waived tax threshold to allow first time-buyers to get on the ladder and buy at least a two-bedroom property in London or potentially a first 3 bed family home elsewhere in the UK . The threshold should change each year to reflect the overall property price index increase or decrease. And surely a fairer and more fluid tax would for example set the bands at £20,000 increases with a percentage increase of 0.1% at each band.

    I may be incredibly naive, but could someone please enlighten me, why do we never hear of any reform that lets go of these arbitrary £125,000, £250,000, £500,000, £1m, £2m bands?

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