Tax burden: Stamp duty comes into effect on property purchases over £250,000, with the rate starting at 5% and then gradually increasing to 12%.
Hundreds of readers have backed Money Mail’s call for stamp duty to be cut in next month’s budget, a move that would unlock a paralyzed housing market.
Our campaign, launched earlier this month, has also gained support from a mix of politicians and housebuilders who have described the tax as counterproductive, anti-growth and an economic drag.
Stamp duty currently applies to removal companies on property purchases over £250,000, starting at 5 per cent and then rising to 12 per cent on homes with values over £1.5 million.
On a £500,000 purchase, a removal company pays stamp duty of £12,500, a figure that rises to £18,750 if the nil rate band is halved in April 2025, as the Government says.
Although first-time buyers get a more favorable stamp duty deal, many believe it is time for Chancellor Jeremy Hunt to provide similar help to older people downsizing.
An easing of the stamp duty yoke would help them move out, freeing up their properties for younger buyers.
Suggestions made by readers include the right for over-65s (or over-70s) to downsize once without having to pay any stamp duty.
It is an opinion shared by David Thomas, head of the construction company Barratt Developments, who believes that encouraging staff reduction would boost home sales and make “more efficient” use of the housing stock.
Do you think stamp duty should be reviewed?