Brexit & EconomyPoliticsHousing plan fails to bolster recovery hopes

Housing plan fails to bolster recovery hopes

Chancellor announces suspension on stamp duty for sales of property worth up to £175,000

Gordon Brown

The government’s plans to revive the housing market by issuing a stamp duty
holiday will not help first-time buyers in the capital and the south east,
advisers said as they questioned the detail of the policy.

Chancellor Alistair Darling has announced a suspension on stamp duty for
sales of residential property worth up to £175,000, with an estimated loss in
taxes over the 12-month period of £600m.

According to Chas Roy Chowdhury, head of taxation at the
Association of Chartered
Certified Accountants
, the real issue lies in the cap placed on purchases
eligible for the holiday.

‘I question why it chose £175,000. In metropolitan areas, how many houses are
there at that price?’ he said.

Roy Chowdhury said a £250,000 cap would enable more people who wouldn’t
otherwise be able to obtain finance to take advantage of the suspension.

‘I’m not sure why it chose this figure ­ we wanted a broader thrust. A more
holistic approach was needed,’ he said.

Mike Warburton, senior tax partner at Grant Thornton, said the £175,000
purchase cap will capture the majority of first homebuyers: ‘Possibly not in
London, but apart from the major city centres, it won’t be a problem. In the
south east it won’t help much. That’s the problem with stamp duty: it’s not
phased regionally,’ he said.

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

4m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

5m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter