Potential Extension to Stamp Duty Holiday
Chancellor Rishi Sunak is considering an extension to the current stamp duty holiday according to media reports today – and the House of Commons has confirmed there will be a debate on the issue.
Sunday Times political editor Tim Shipman – regarded as one of the best informed political journalists with multiple contacts in government – writes: “Contrary to some reports [Sunak] is considering an extension to stamp duty cuts.”
However, this may be tempered by the possibility of other property taxes emerging in the future.
Shipman says the upcoming Budget on March 3 is unlikely to produce permanent changes to property taxation but he warns that the Treasury is considering long-term radical options.
Ending stamp duty completely is being seen as one possibility and Treasury minister Jesse Norman – who reports to Sunak – has asked for more work to be done on an alternative.
Shipman says some Conservatives feel SDLT currently acts as a barrier to families trading up to a bigger home, and older owners trading down and making the housing market more flexible.
An alternative may take the form of “a proportional property tax, levied on the existing value of homes” and could be an alternative to both stamp duty and council tax in years to come.