New research has revealed that most property and construction companies in the UK believe that stamp duty is the most significant barrier to business growth.
According to tax and advisor firm Crowe Clark Whitehill, 55% of respondents believed that the tax was the biggest hurdle for their business, with just under three-quarters (70%) being of the view that the current tax system in the UK is having an adverse impact on the industry.
The results of the survey also suggest that the impact of policitical uncertainty is being felt across the industry, as 77% of respondents felt that June’s general election had had a negative effect on the market. It was up to the Government, they felt, to reassure the industry prior to the UK’s departure of the European Union next year.
Commenting on the statistics was head of property and construction at Crowe, Stacy Eden. Whilst acknowledging the benefits that the tax brings to the Treasury, he stated that the negatives on the wider market should not be underestimated.
‘While recent stats show that stamp duty receipts have risen, this should not cloud the reality of what is going on in the market.
‘The negative stamp duty levy remains a substantial burden and a drag on sector growth. Reducing this burden should be the government’s first step to encouraging much needed investment and liquidity in the market.
‘Building on greenbelt land is possibly the only chance councils have for hitting a target of up to 300,000 new homes a year that is arguably needed to solve the housing crisis.’
