Published On: Fri, Nov 8th, 2019

Retirees and homeowners most vulnerable to ‘very big whack’ of stamp duty – ‘It’s unfair!’ | Personal Finance | Finance

Share This

Campaign Manager for the TaxPayers’ Alliance, Duncan Simpson, spoke to about the “unfair” impact of stamp duty tax on homeowners and retirees. Stamp Duty Land Tax is paid on the purchase of a home in England or Northern Ireland costing more than £125,000. Mr Simpson warned that those “in retirement or nearing retirement” and “first-time buyers” bear the brunt of the “perversive” tax.

He told “I think the threshold at which stamp duty is paid should increase.

“Stamp duty is paid when you buy both residential and commercial property.

“I think the average price that you pay in stamp duty on commercial property is almost £30,000 now which is obviously a very big whack if you’re an entrepreneur who’s opening their first shop or even if you’re not.

“If you’re a very established business that is seeking to expand.”

READ MORE: ‘Cruel’ inheritance tax devastating grieving families

He continued: “That’s a very big whack of capital which you have to find to then hand over to the Treasury when you’re seeking to expand.

“And I think also fundamentally stamp duty is very unfair on first-time buyers.

“Not just on them, but for those who are in retirement or nearing retirement who want to downsize.

“If practicality of a large home is troublesome and you want to get a smaller one, you will nevertheless have to be finding money for stamp duty on top of the cost of the property and on top of whatever fees have to be paid up front to actually buy property in the first place.”

The campaign manager told “Even for those who are mid-career as well, if you need to get a job that is 20 miles down the road or 200 miles down the road, it’s obviously possible that you’ll have to move.

“I think the average a couple year back on residential stamp duty was almost £10,000.

“If you have to fork out quite a substantial amount of stamp duty in the first place, that would perhaps affect your decision to take employment opportunities.

“It has quite a perversive impact on labour markets.

“And how people choose to go about choosing their jobs.

Source link

About the Author