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Rics calls for stamp duty tax change
08/03/2006 13:10:00
The Royal Institution of Chartered Surveyors (Rics) wants the existing system of stamp duty land tax changed as it thinks it is unfair.
Rics believes that the tiered system of tax is hindering first-time buyers and stagnating the property market as house prices cluster around tax brackets.
At the moment, properties sold for less than £120,000 have no stamp duty, properties between £120,000 and £249,999 pay tax worth one per cent of the property value, three per cent tax is paid on homes between £250,000 and £500,000 and four per cent above this.
Jeremy Leaf, chairman of the Rics residential faculty, commented: "It's not just homebuyers who resent the current tax structure. Estate agents firmly believe it should be changed. The structure of stamp duty is antique – this tax needs to catch up with the property market and house prices."
Rics pointed out that with the average house price standing in the region of £60,000 above the lowest tax threshold, the threshold should be raised to £150,000, with heavier taxation of 5.5 per cent on homes over £1 million.
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