You are here: Home - News -

ACCA calls for Stamp Duty rate reform

by:
  • 15/02/2002
  • 0
Stamp Duty on house sales has been described by the Association of Chartered Certified Accountants (...

Stamp Duty on house sales has been described by the Association of Chartered Certified Accountants (ACCA) as unfair, out of date and in need of review.

Chas Roy-Chowdry, head of taxation at the ACCA, said: ‘The poorly-designed Stamp Duty system is creating distortions and financial difficulties for ordinary taxpayers buying and selling properties close to the boundary of a band. With the housing market showing signs of cooling, the Government should take the opportunity to introduce some equity into the system.’

The main criticism centres on the unfairness of duties for houses around the threshold level of £250,000. For those paying just above £250,000 price hikes of thousands are involved as they jump from the 1% rate to 3%.

‘The housing market has been buoyant over the last few years, increasing the number of people affected by the higher Stamp Duty rates on properties over £250,000. To make it fairer, the bands should operate in the same way as income tax rates so a house costing £290,000 would only be charged at the 3% rate for Stamp Duty on the difference,’ Roy-Chowdry said.

Bernard Clarke, communications manager at the Council of Mortgage Lenders, offers full support to the ACCA.

‘We agree with what the ACCA is saying,’ Clarke said. ‘We want the impact of Stamp Duty smoothed out so that higher rates are levied. For example, if a house is sold for £280,000, the 3% Stamp Duty should only be levied on the £30,000 above the threshold rate of £250,000 and then 1% levied on the remaining amount.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
LMS launches new service to help clients buy abroad

Legal Marketing Services (LMS) has launched a European mortgage service intended to make the process...

Close