1
Jul
RICS calls for radical stamp duty reform
The Royal Institute of Chartered Surveyors (RICS) has called on the
government to reform the stamp duty system, describing it as "no
longer fit for purpose".
It stated that the current system presents a major obstacle to
property purchase as prices continue to fall.
The organisation is suggesting that it is reformed to lower the tax
burden on both first-time buyers and those moving home by
introducing a two-tier marginal system.
RICS proposed that no homebuyer should pay stamp duty on the first
£150,000 of their new home, while anything between that figure
and £250,000 should only attract a marginal rate of 2.5 per
cent. After this, all values should be taxed at five per
cent.
"Unlike a single marginal rate, RICS' proposals allow [the]
government to protect revenues whilst ensuring the vast majority of
buyers could benefit," it said in a statement.
Currently, properties under £125,000 attract no stamp duty,
while those valued under £250,000 pay one per cent stamp duty,
which rises to three per cent for homes costing between
£250,000 and £500,000 and four per cent for anything over
this price.
