Former minister argues case for regional stamp duty
A former Conservative minister has urged the government to consider including regional stamp duty thresholds in its next budget.
Tim Loughton, a former Children’s minister and current MP for East Worthing and Shoreham, also said that he would also like to see a commitment to this within his party’s election manifesto.
He suggested it was unfair for homeowners in London and the South East to be penalised with higher Stamp Duty Land Tax (SDLT) payments as a result of higher property prices in those regions.
Speaking to Money Marketing, Mr Loughton said the he would like to see the current £125,000 threshold raised so that less well off people would not have to pay any SDLT, while he also proposed a cap that would prevent families paying “disproportionately more”.
Potential benefits for London’s homeowners
If the government were to implement these regional caps and shift the boundaries for London and the South East, it could of course potentially benefit all homeowners in these areas.
While Mr Loughton’s ideas seem to focus mainly on the lower SDLT band, it would seem a logical progression for each of the boundaries to be shifted upwards slightly. This could mean that those planning to purchase a home at sums close to the current boundaries may see their SDLT obligations decrease.
However, with the government reportedly seeing a £1 billion per year surge in the amount of SDLT it collects as a result of rising house prices, it remains to be seen whether Parliament will decide to address this issue.
Reducing you stamp duty land tax with Fiducia
If you have concerns about your Stamp duty land tax payments and would like to speak to us about tax mitigation, you can contact us by filling in our enquiry form or calling 01625 599 200.