SLC urge Government to scrap Stamp Duty
The Government should scrap Stamp Duty Land Tax to create a more “buoyant and vibrant” property market, insists the Society of Licensed Conveyancers (SLC).
Additionally, with the amount of tax relief that landlords can claim on their mortgage interest payments falling to the basic rate from April 2017, there is widespread concern in the industry that many more landlords will be deterred from investing in the buy-to-let sector, which would reduce the stock of much-needed rental homes.
The SLC believes that scrapping Stamp Duty would not only create a more stable and lively property market, but would also lead to a “marked hike in investment and building of new homes” along with creating a “much more straightforward and quicker home buying and selling process”.
The Chairman of the SLC, Simon Law, says: “Stamp Duty Land Tax is perhaps the most inaccurately named tax in existence. There is no stamp involved, it is not a duty, and it is on assessed property values rather than land. In fact, the only word that is in any way accurate is tax. In reality, SDLT is a direct property transaction tax.
“It is ironic that the Government is engaged in a review to improve the home buying process, when it has introduced legislation that actually makes the process more complicated and tortuous. It is an insult on top of this that HMRC looks to conveyancing lawyers to act as tax collectors.”
As well as the 3% stamp duty rise, landlords are also being left with no alternative but to pass extra costs onto their tenants with the likes of;
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