Tax burden: Stamp duty kicks in on property purchases above £250,000, with the rate starting at 5% and then rising in stages to 12%
Hundreds of readers have backed Money Mail’s call for stamp duty to be cut in next month’s Budget, a move that would unlock a bunged-up housing market.
Our campaign, launched early this month, has also drawn support from a mix of politicians and housebuilders who have described the tax as counter-productive, anti-growth and an economic dampener.
Currently, stamp duty kicks in for house movers on property purchases above £250,000, starting at 5 per cent and then rising to 12 per cent on house values above £1.5million.
On a purchase of £500,000, a house mover pays stamp duty of £12,500, this rises to £18,750 if the nil-rate band halves in April 2025 as the Government says it will.
Although first-time buyers get a more favourable stamp duty deal, many believe it’s time for Chancellor Jeremy Hunt to give elderly downsizers similar help.
An easing of their stamp duty yoke would help them move, freeing up their properties for younger buyers.
Among the suggestions made by readers include the over 65s (or over 70s) being given the right to downsize once without having to pay any stamp duty.
It’s a view shared by David Thomas, boss of housebuilder Barratt Developments who believes that incentivising downsizing would boost house sales and make ‘more efficient’ use of housing stock.
Do you think stamp duty should be overhauled?
Email jeff.prestridge@dailymail.co.uk
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