Call to scrap 'outdated' stamp duty
Updated on 15 October 2009
Stamp duty is an "anachronistic" tax on aspiration and should be reformed, property professionals have said.
The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) said the way stamp duty was charged distorted the UK's property market.
The groups said 86% of estate agents thought the tax was unfair, while 81% thought reforming it would have a very positive impact on the property market.
In addition 91% of estate agents also thought the current stamp duty holiday on properties costing up to £175,000 should be extended.
The NAEA and the ARLA have joined forces to call for the tax to be modernised. They are calling themselves the 1808 coalition, after the year in which stamp duty was first introduced, to highlight their belief that the tax is a "relic of another age".
Peter Bolton-King, chief executive of the NAEA, said: "Stamp Duty is a barrier to entry for many first-time buyers and is also prohibitive for those looking for a step up the property ladder.
"The time has come to re-assess Britain's most unpopular tax, which is a levy on those aspiring to own their own homes and is manifestly perceived by all those who pay it as being unfair and punitive."
Stamp duty is currently charged at 1% of the purchase price on properties costing between £175,000 and £250,000, although this will fall back to ones costing from £125,000 from the beginning of next year.
People buying a property for between £250,000 and £500,000 have to pay 3% of the purchase price in stamp duty, while the tax is charged at 4% on homes costing more than £500,000.
But commentators argue that the way the tax is charged distorts the property market, as people buying a home for £251,000 have to pay stamp duty of £7,530, while those buying one for only £249,000 pay only £2,490.
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