Chancellor urged to axe Stamp Duty in forthcoming Budget

Chancellor urged to axe Stamp Duty in forthcoming Budget

 

A recent report from the Adam Smith Institute suggests that Stamp Duty is the most ‘damaging’ tax Britain has, and abolishing it should be top of the Chancellor’s agenda. 

It is evident that homeowners have been charged Stamp Duty at rapidly increasing rates over the past two decades, even more so following the introduction of the 3% surcharge in April 2016.  

Last year alone, Stamp Duty Land Tax raised a record £11.7bn, up from £10.7bn the year before.

The leading think-tank believes axing Stamp Duty would not only help solve the current housing crisis but could also deliver a £10bn boost to the economy.  

How would this be achieved?  One proposal in the report is to instead raise the council tax on the most expensive homes.

Sam Bowman of the Institute states “Stamp Duty is the worst tax we have got – scrapping it should be a no-brainer.”

Earlier this year, a report by the London School of Economics and the VATT Institute for Economic Research also stated that the rate of home moving would be 27% higher without Stamp Duty.

Will the Chancellor agree that axing Stamp Duty would be bold move and make good economic sense?  We shall have to wait until the Budget is delivered on 22nd November, later this month.