Rics call for end to stamp duty to 'increase accessibility' for first-time-buyers

Posted: 01 Jul 2008 13:13:22 GMT

The Royal Institute of Chartered Surveyors (Rics) has called for a change to stamp duty to reduce barriers for first-time-buyers.

The Royal Institute of Chartered Surveyors (Rics) has called for a change to stamp duty to reduce barriers for first-time-buyers.

RICS believe that a two tier marginal system "could significantly help increase transactions and help government to fulfill its objectives for the housing market".

Stamp Duty Land Tax (SDLT) is currently charged differently depending on the value of the property.

It is charged at one per cent of the full sale price for properties worth between £125,000 to £250,000, and three per cent for homes worth £250,000 to £500,000, rising to four per cent for properties worth over £500,000.

Under the new RICS recommendations, homebuyers would not pay SDLT on the first £150,000 of the property they are purchasing and would pay just 2.5 per cent between £150,000 and £250,000.

Homebuyers would then be taxed at five per cent on any value over £250,000. The new system would, according to RICS, "be fairer and correct the distortions of the current system whilst increasing accessibility and fluidity throughout the market".

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