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AMI calls for reform of Stamp Duty

by: Mortgage Solutions
  • 25/03/2010
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AMI calls for reform of Stamp Duty
Association of Mortgage Intermediaries (AMI) has described Stamp Duty as a badly constructed tax, which is sorely in need of proper reform.

It said the increase in the Stamp Duty exemption to £250,000 in yesterday’s budget was welcome but added that limiting this exemption to first-time buyers will restrict the benefits which this could have brought to the property market.

Robert Sinclair, director of AMI, added: “By introducing a new level of the tax at £1m we continue to have an unfair slab tax that will cause a £10,000 jump in the tax for a £1 increase in the price of the property. This smacked of political opportunism.

“With the increase from 1 to 3% at the £250k figure as well, this is a significant cost to be borne and added to loans.”

AMI welcomed the news that regulation of second charge lending will move to the FSA.

He explained: “In time this will simplify advice for the consumer and encourage a more holistic approach from intermediary firms.”

 

 

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