OSBORNE WON’T HAND OVER STAMP DUTY IN DEVOLUTION DEALS
Chancellor George Osborne has dealt London a blow by suggesting the devolution of power away from Westminster will not mean the redirection of revenue collected from stamp duty.
The Chancellor has officially announced a deal which will see Manchester receive more than £1 billion in devolved powers and have its own elected Mayor. The decision was unanimously agreed by ten local council leaders and will come into effect in 2017.
Speaking at the London Conference about Osborne’s announcement this week, the Cities Minister Greg Clark was questioned on the issue of devolution.
When asked about property taxes, Clark commented: “The Chancellor said the Manchester deal is open to other cities – that does not include the devolution of property taxes.”
DEVOLUTION CAMPAIGNERS UNHAPPY WITH ANNOUNCEMENT
Campaigners will be able to look forward to more local power, but they are likely to be unhappy with his message on property tax. In July, Conservative MP Tim Loughton argued that regional Stamp Duty should form part of the next budget.
London contributes nearly a quarter of the UK’s revenue from income tax, corporation tax and business rates, yet the government are unwilling to hand over these revenues to local authorities.
The Centre for London think tank is “focused on the big challenges facing the UK’s capital”, they propose the devolution of services like education and healthcare. They also suggest taxes are handed to the city in their ‘More power for London’ campaign.
Mayor of London Boris Johnson has conducted a high profile campaign to direct taxation money away from the Treasury, but he has conceded this is “not going brilliantly”.
FIDUCIA CAN HELP MITIGATE YOUR STAMP DUTY
As it stands there will be no immediate changes to property tax legislation in the UK, meaning Fiducia are able to continue in helping you mitigate your stamp duty contributions using legally compliant wealth management strategies.
We use efficient strategies to ensure that you are not paying any more than is necessary. If you would like to discuss this with the Fiducia team, call us today on 01625 599 200.