Stamp Duty land tax avoidance
HMRC is doing its best to clamp down on Stamp duty land tax avoidance with the anticipated chancellors announcement in this year’s budget to closedown schemes which involve circumventing the sub-sale of transfer or rights rules.
The taxpayers Alliance is looking to see stamp duty abolished in the 2014 budget. According to the tax payers Alliance ”back in 1993 there was only one rate of stamp duty -1% and it started at £60,000, which was more than the average house price at the time. Now we have five rates 1% 3% 4% 5% and 7%. More than two thirds of families pay stamp duty when they move house. 183,000 pay the punitive 3% rate or even more”
With house prices as they are, particularly in the south-east, it is very difficult now for a first time buyer not be paying something in excess of £7500 into the chancellors coffers.
I am sure we would all like to see a change in the way that buyers are taxed when buying their home and any form of concession / relaxation with this disliked tax would undoubtedly benefit the property market throughout the whole of the UK.
Alex Mackay / Managing Director