Think tank says scrapping SDLT could help solve housing crisis
A think tank has called for Stamp Duty Land Tax (SDLT) to be scrapped in the run-up to the next Budget.
The Adam Smith Institute stated that as well as boosting the economy, abolishing the tax would help to alleviate the housing crisis and have urged Chancellor of the Exchequer, Philip Hammond to consider this proposal.
SDLT has been a constant subject of criticism within the industry, with a number of calls being made for it to be banned due the potential barrier it’s causing for first time buyers.
Highlighting the impact it’s having on property demand across the board, the think tank stated that the tax is deterring people from moving up the property ladder, as well as those trying to access it for the first time.
However, whilst the Institute backs the abolition of the tax, it also notes the valuable income stream that the tax has been for the Government. As an alternative, it suggests that Council Tax should be increased on the most expensive homes in order to alleviate any loss.
Commenting from the think tank was Sam Bowman. He stated: “Stamp Duty is the worst tax we’ve got.
“It is gumming up the housing market and keeping people trapped in the jobs that aren’t best for them.
“Scrapping it should be a no-brainer.”