Rics proposes offsetting stamp duty for senior homeowners looking to downsize

Posted: 11 Jul 2008 13:59:00 GMT

Stamp Duty Land Tax (SDLT) needs to be reassessed to prevent it becoming a "major barrier to purchasing property".

That is the view of the Royal Institute of Chartered Surveyors (RICS), which has advised that those looking to sell property and downsize should not be liable to pay the duty.

RICS has proposed that the government needs to consider "whether it wants to tax those who are asset-rich and income-poor and wishes to put their finances on a more sustainable footing".

According to RICS, the current system of SDLT disincentivises older residents from selling their property and moving to a smaller home.

The current prohibitive cost of stamp duty, RICS argues, mean that those selling their property could take many years to recoup charges.

Proposals to create a system where no homebuyer would pay SDLT on the first £150,000 of their home would, RICS says, significantly help to reduce costs for those looking to purchase property.

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