Thursday 12 Jan 2017
Review of Stamp Duty needed following referendum roller-coaster says leading business organisation
The Treasury should review the impact of Stamp Duty on London's property market given recent political and economic changes according to London Chamber of Commerce and Industry.
The current system of Stamp Duty Land Tax was announced in September 2014 by the then Chancellor, George Osborne.
Mr Osborne's reforms took away the "slab structure" of charging tax according to a percentage of the total cost of the property (within bands), instead charging in a similar way to income tax.
Since then however, some estate agents and developers have reported a fall in sales of properties in the new higher £1.5million bracket - as well as a reported increase in the wealthy renting rather than actually buying.
Chief Executive of LCCI, Colin Stanbridge said: "One of London Chamber's primary concerns is that ordinary Londoners can afford to live and work in the capital, helping businesses attract and retain the best talent.
"The 2014 reforms were introduced in a very different political and economic landscape. Since then we have had a new government and, most crucially, seen a vote to leave the EU. As a result the London economy has seen some seen uncertainty.
The new reformed system reduced the amount of stamp duty paid on 98pc of purchases, which was obviously welcomed by man y throughout the country. However, the new new higher £1.5million+ bracket, with 12% tax rate, dispportionately impacts London given the profile of property in the capital.
With the Budget scheduled for 8th March we believe the Treasury should consider a review of the impact of Stamp Duty on London's property market.
With Brexit on the horizon it is important we maintain London as an attractive and thriving economic hub".
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NOTES TO EDITOR:
1. London Chamber of Commerce and Industry (LCCI) is the capital's largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders.
2. Colin Stanbridge, chief executive is available for further comment and interview.