With first-time buyers being priced out of the market at the bottom end, the NAEA is calling for a revision to Stamp Duty and is proposing a new scale. It is also concerned that buy-to-let investors are being left out in the cold on Capital Gains Tax, which should be revised to create a better incentive, thus enabling investors to buy and sell property more easily, creating fluidity and variety in the market.
Stamp duty calculator
The NAEA is proposing a Stamp Duty scale based on a series of thresholds similar to income tax, so for example, for a property worth £250,000, the first £200,000 would be under the Stamp Duty limit, meaning Stamp Duty would only be levied on £50,000 at 1% = £500. Suggested Stamp Duty thresholds:
Up to £200,000 0%
£200,001 to £300,000 1%
£300,001 to £450,000 2%
£450,001 to £1million 3%
£1million and above 4%
£2 million and above 4.5%
The government needs to be aware that with inflation rising consumers need a helping hand. We would like to see a scale of stamp duty that reflects the house price inflation in recent years. We would also like to see a revision of Capital Gains Tax for buy-to-let investors who are fast becoming the back-bone of the private rental sector, says Stewart Lilly.
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