Should stamp duty on buying a home be abolished?
Stamp Duty Land Tax (SDLT) is currently charged on residential property purchases in England and Northern Ireland above £125,000 at rates of 2% to 12% in bands, with first-time buyers paying nothing up to £300,000 on homes up to £500,000 and an extra 5% surcharge on additional properties. The thresholds reverted to these levels on 1 April 2025 after temporary higher thresholds expired. Abolishing it would remove a tax that raises billions annually but is often criticised for reducing housing market mobility.
43 Opinions
Where is the money going to come from to replace it?
A little more help to those saving to buy.
It prevents labour market mobility, locks elderly people in empty nest homes and generally acts as an artificial break on economic growth.
Make it lifetime bound rather than single purchase bound. ie if you own a 700k property and move to a 950k one, you only pay on the 250k addition, whereas if you downsize to at a 500k property you wouldn't pay anything. At the moment it just gums up the market - I want to move but the sunk cost from paying it just 4 years ago prevents me from wanting to pay again.
Reformed rather than abolished last time they paused stamp duty the market massively overheated with prices significantly rising many people are now struggling because their mortgage rates have hugely increased because they have had to borrow larger sums, it probably didn't help inflation I understand it was COVID times but the policy needs to be really thought out on the wider effects on economy. The government would have to raise other taxes to pay for it.
Not necessarily abolish, but amend so it is paid by seller not purchaser. Will need to ensure current owners are not taxed twice on the same property though.
There is an argument for keeping an extra tax on purchasing additional properties but it would be abolished for primary residences
I dont think it should be abolished but certainly reformed. The bands need to be moved back to a realistic level. 0% for 1st time buyers and then graduated the same way income tax is
Stamp duty is a classic example of a tax causing market inefficiencies by making people hold on to property they already own as selling it to buy something else leads to a big tax bill. A land value tax would be much better as it would make downsizing more attractive as it would cut your tax bill not create one. It would also be a much more predictable revenue stream as it would not depend on market activity.
It's a sneak tax that we've already paid tax on given our wages that pay the deposit/mortgage are also taxed. Abolishing it would force govt to be more transparent about tax.