Major Reform Called For On "Tax On Aspiration"

A property sector coalition is urging the Government to abolish in its current form the "anachronistic" Stamp Duty Land Tax, which it views as a "tax on aspiration".

According to the "1808 Coalition", Stamp Duty should to be reformed because its ‘slab' structure unfairly distorts the UK's property market.

An overwhelming majority of the UK's estate agents (86%) feel that the tax is unfair.  A further 81%  believe that an announcement by the Government to reform Stamp Duty would have a very positive effect on the beleaguered property market.

The current Stamp Duty "holiday" for properties lower than £175.000 is due to expire but 91 % of estate agents surveyed feel that it should be extended.

The 1808 coalition has been formed by the NAEA and ARLA to address the issue of "modernising" Stamp Duty in the run-up to the Pre-Budget Report.  It is named after the year the duty was first introduced on UK property sales, and highlights its position as a "relic" of another age that fails to recognise the modern British property market.

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. In addition, it unfairly penalises those investing in buy-to-let portfolios, who have to pay Stamp Duty on the bulk price when individual buy-to-let investors pay a lower rate on the individual unit price.

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 was introduced for property sales in 1808 and has gone through a number of changes since then, most recently with the addition of next bands in 1997.  As house prices have risen, Stamp Duty has become increasingly outdated, as the thresholds have not been raised in line with property prices.

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