In a written question to the Treasury, MP Stephen Farry asked if the chancellor had assessed “the potential merits of using differential rates of stamp duty to incentivise the development or purchase of comparatively energy efficient housing”.
In response, financial secretary to the Treasury, Lucy Frazer, said: The government does not have any plans to reform stamp duty land tax (SDLT).
“SDLT is charged on the purchase of property or land in England and Northern Ireland where the value is over £125,000. First-time buyers do not pay any SDLT on purchases below £300,000. Introducing incentives based on energy consumption would add significant complexity to the current operation of the system.
“The government keeps all taxes under review.”
Ongoing requests for change
Calls to make changes and exempt a wider pool from paying the tax have been ever present, with discussions around reforms resurfacing following the stamp duty holiday.
It has been suggested that reviewing stamp duty would encourage more home moves and activity in the property market, as the tax is thought to put some people off.
The tax intake for stamp duty has remained significantly above levels seen last year in part due to rising house prices.
The National Association of Property Buyers (NAPB) has been among those calling for change, saying relieving pensioners from the tax would shift the market.
The National Residential Landlords Association (NRLA) also proposed scrapping the three per cent surcharge on additional properties to resolve the rental supply shortage.
Increasing house prices has also put more homes into the stamp duty bracket, which Jonathan Stinton, head of intermediary relationships at Coventry Building Society said made a case for reforms.
