A new report from the Adam Smith Institute lays out compelling reasons for the abolishment of the Stamp Duty Land Tax (SDLT) in the UK.
There are arguments to support the idea that stamp duty on the sale of property is jamming the housing market, forcing people to stay in houses that are too large for them, and preventing people from moving areas to access the jobs they need. The report states that stamp duty is the most damaging tax in the UK, and that the Chancellor should have scrapping it at the top of the agenda in the run up to November’s budget. Continue reading →
New PM Theresa May is believed to be considering paying Community Infrastructure Levy (CIL) directly to local residents in a bid to gain support for new developments, writes property developer Richard Carr.
Is CIL damaging house building?
The news comes after she announced proposals for cash from a scheme to share the proceeds of shale gas revenues to be handed straight to households.
The move is a step away from the first announcement in last year’s Autumn Statement when it was understood that shale revenues would go to community trusts and local authorities.
But Number 10 said that the new government has “changed the consultation to ensure a greater focus on control for local communities – including insisting on proposals to transfer funds directly to households rather than local authorities”.
Design and consultancy firm Arcadis has called for the country’s chancellor George Osborne to pause housing tax on high end luxury properties or risk distorting the wider market, writes development specialist Richard Carr.
Successive stamp duty hikes has seen buyer interest drop in the UK’s high end property market at a time when there had been a 40% rise in prime properties planned for development in London.
Many projects in development for a number of years have been disproportionately affected meaning that they delivery of affordable homes could also be put at risk.
The government appears to be giving mixed messages in relation to the market; initially they encouraged investment in prime residential property, but have changed policies mid-cycle, leaving developers in trouble.
This week the government announced new stamp duty rates commercial property in the UK, but who will benefit and who will lose out?
Property Developer Richard Carr believes this is another example of the government using the stamp duty to tax raid the industry. As with CIL and s106, Richard believes the government should be relaxing tax not making it more expensive.
The government has made another stamp duty tax raid on commercial property
According to propertywire.com, investors in large commercial property in the UK will see a rise in stamp duty rates, whereas buyers of smaller properties will benefit from a reduction in the tax payable.
As of today (March 17th) stamp duty will no longer be applied to the whole transaction fee, but to bands based on a portion of the fee.