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The UK’s tattered government should jolly well slash stamp duty if it knows what’s good for it, a new report has insisted.
According to right-wing think tank the Centre for Policy Studies (CPS), stamp duty is a “tax on mobility and aspiration” and the current £125,000 threshold should be raised to £500,000.
The report has been penned by former government housing adviser Alex Morton, who reckons properties worth £500,000-£1m should pay 4% stamp duty, while any homes over £1m should stump up 5%.
And what’s the point of all this? Well, CPS estimates that a 1% cut in stamp duty would increase house sales by 20% which would lead to a rise in new builds.
Author Morton said: “While the Treasury are right to be fiscally focused, they need to take into account the fact that stamp duty on homes has an impact on transactions, which means cutting this tax is cheaper than expected.
“We propose mean a far more appropriate rate for the most valuable homes – and taking nine out of 10 people who just want to buy a decent home for themselves and their family out of the tax altogether.”