
Back in 1993 there was only one rate of Stamp Duty – 1% – and it kicked in at £60,000, which was more than the average house price at the time.
Now we have five rates: 1%, 3%, 4%, 5% and 7%. More than two thirds of families pay it when they move and 183,000 a year pay the punitive 3% rate or even more
Stamp Duty is an enormous problem for first-time buyers. If they are saving up for a 10% deposit, for example, having to find another 3% on top of that creates is a challenging obstacle on the way to their dream of owning their own home.
It creates problems for anyone with a growing family and anyone who needs to move to take a new job. And Stamp Duty also discourages elderly people from downsizing to a smaller property more suitable for their needs. They will avoid moving if it means paying thousands of pounds in extra tax.
The structure of the tax is a mess. If you pay £1 over the £250,000 threshold, you will pay three times as much in Stamp Duty.
Two major recent reviews of the tax system – the2020 Tax Commission from the TaxPayers’ Alliance and the Institute of Directors and theMirrlees Review from the Institute for Fiscal Studies – concluded that it should be abolished.
Stamp Duty – a counterproductive tax. A Proposal for Reform by the TaxPayers’ Alliance
Research Note 129 | 23 August 2013: Three in ten homes to suffer Stamp Duty hike by 2017
Send a message to your MP and help us stamp out Stamp Duty.
We think there is an important opportunity right now to do something about Stamp Duty. Grassroots campaigns can be highly effective – we saw that with the £200 million cut in beer tax earlier this year – but they cost money. If you can make a financial contribution, then that would help us do more to take on this unfair and increasingly arbitrary tax.
We are entirely dependent on private donations so you are directly contributing towards the strength of our campaign.
There are several ways you can give:
- via PayPal, using the secure formhere
- by cheque, made payable toThe TaxPayers’ Alliance and sent toThe TaxPayers’ Alliance, 55 Tufton Street, London SW1P 3QL
- by standing order.Email our Development Director Sara Rainwater for a form
- by credit or debit card by calling Sara on0845 330 9554
Thank you very much for choosing to make a donation to the TPA.
