Stamp duty is crying out for reform, says Gillian Charlesworth
In October 2007, the Royal Institution of Chartered Surveyors (RICS) held a breakfast meeting for MPs interested in discussing ideas for reform of stamp duty. The meeting was the beginning of a policy development process which culminated in July's publication of RICS' stamp duty policy and call on government to reform this unpopular tax. The work included detailed analysis by RICS economics team of the impact of various alterations to stamp duty rates, both in terms of savings for home buyers and potential revenue reduction for the government. We decided to depart from a revenue neutral proposition since one of our main conclusions was that the current system, which in recent years has only seen substantial increases in revenue for HM Treasury, is unfair and unhelpful. Today's market conditions confirm the need to act.
Marginal Rates
The central proposition of RICS' proposals is a move away from the current slab system towards the adoption of a two-tier marginal system. We believe that this will play a strong role in creating a more accessible, efficient
