News & Legal Updates
Sign up to news & legal updates
I was interested to see that a second London agent is calling on the Chancellor to consider amending Stamp Duty and making this a tax that is payable by the seller rather than the buyer. Another agent is asking for it to be split between vendor and purchaser. Jeremy Leaf, former RICS Residential Chairman, is calling for help for downsizers and first time buyers by way of Stamp Duty concessions to stimulate more transactions. “If sellers, rather than purchasers, pay stamp duty, activity will increase especially if house building picks up too – bearing in mind the increasingly high proportion of first-time buyers who pay [SDLT] now”; says Leaf. He says high Stamp Duty levied on buyers is stopping transactions across the housing market, not just at the top end but also amongst first time buyers.
While these comments are very London based, readers of previous blogs will know my views are that LBTT in Scotland has had a dampening effect on the housing market and with the addition of the Additional Dwelling Supplement this is making market conditions very difficult. I would be asking the Scottish Government to reduce the rate of the “ADS”, increase the bandings for LBTT and create a pot for first time buyers funded by way of amendment to Capital Gains Tax regulations to ensure that if anybody sells a property, even if it is their sole or main dwelling house, within seven years of purchasing it then a certain portion of the gain should be taxed at CGT levels. I think this will remove some of the burden from the house purchaser and, in my view, paying a tax from excess profit is always a less painful way of doing it.
Partner – Head of Property
The opinions expressed in this site are of the author(s) only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this site is accurate and up to date. The site is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Site visitors should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this site. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this site may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this site is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2011
Members of the Law Society of Scotland. Authorised to conduct Investment Business under the Financial Services & Markets Act 2000 by the Financial Services Authority.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.Back to News & Legal updates