1 Jul

RICS calls for radical stamp duty reform

RICS calls for radical stamp duty reform

The Royal Institute of Chartered Surveyors (RICS) has called on the government to reform the stamp duty system, describing it as "no longer fit for purpose".

It stated that the current system presents a major obstacle to property purchase as prices continue to fall.

The organisation is suggesting that it is reformed to lower the tax burden on both first-time buyers and those moving home by introducing a two-tier marginal system.

RICS proposed that no homebuyer should pay stamp duty on the first £150,000 of their new home, while anything between that figure and £250,000 should only attract a marginal rate of 2.5 per cent. After this, all values should be taxed at five per cent.

"Unlike a single marginal rate, RICS' proposals allow [the] government to protect revenues whilst ensuring the vast majority of buyers could benefit," it said in a statement.

Currently, properties under £125,000 attract no stamp duty, while those valued under £250,000 pay one per cent stamp duty, which rises to three per cent for homes costing between £250,000 and £500,000 and four per cent for anything over this price.

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