One of my favourite legal questions comes from clients who ask (at least once a year!) how much of a "cut" I get for collecting Stamp Duty Land Tax (SDLT). Each time I am asked this I have to explain that we are doing this for free for HMRC. They don't give us part of it back. If they did I would have retired by now.
The chap in this article hits upon a time-old issue; why are buyers charged a tax? Well yes, there would be considerable uproar if sellers had to pay tax when they sold their main residence. It is in the British psyche that an "English person's home is their castle" and a lot of people view the equity in their home as part of their assets.
However, if sellers were to pay a sum equivalent to the current rate of SDLT when they came to sell would it be that bad? Would prices increase because of it? Would the market rise or fall?
The answer is... I don't know, and I don't think we will ever see it, since our beloved politicians seem to be incapable of making decisions these days.
One thing I can say for certain is the team here at Dutton Gregory Solicitors are ready to help with all your property needs.
Contact us today: firstname.lastname@example.org
“A particular case in point is the number of older property owners, who are put off moving to smaller residences and freeing up ‘frozen’ capital, because they have to pay SDLT on a new purchase” he says. “While releasing equity in one’s property is becoming very popular via equity release, many people either need to move because of advancing age and infirmity or because they want to release capital by downsizing, rather than by taking on another loan commitment via equity release.”