A buying agent has given his backing to the prospect of a Stamp Duty and Inheritance Tax (IHT) cut during this week’s Autumn Statement.
Chancellor Jeremy Hunt is reported to be planning tax cuts in this week’s Autumn Statement, with Stamp Duty and IHT reforms on the agenda.
Liam Monaghan, managing director at London Central Portfolio (LCP), said momentum is needed in the property market after a long period of falling transaction volumes across England & Wales as well as limited price growth.
Only 538 houses in prime central London transacted over the past 12 months to August, this accounts for only 10 transactions a week, according to LCP research.
Monaghan said: “One way of kick starting this will be to encourage downsizers to leave their large family homes with a Stamp Duty incentive.
“Currently it is not economically viable for empty nesters to leave their large properties and owners simply hold onto their assets for longer than planned.
“A Stamp Duty cut would see a much-needed increase in stock and boost in transactions as large family homes, that are in high demand, become available for sale. This in turn will help create more stock for first and second-time buyers."
However, although a Stamp Duty holiday for downsizers would be “nice to have,” Monaghan said it’s not a long-term solution, adding: “Often with Stamp Duty holidays, transactions are simply brought forward and then we see a transaction lull once the holiday comes to an end.”
He suggested cutting Inheritance Tax not only would be a wise and popular move for the Conservatives just before a General Election, but it would also help the UK be more competitive on a global platform for overseas investment which will help boost the general UK economy.
Monaghan added: “It would also help build momentum in transaction volumes and price growth for the domestic market. This could ensure a kick start to the market, as a flat 40% tax for IHT will ensure lack of activity continues."
The extension of Inheritance Tax from April is likely to hinder...
Two years of stagnation fuelled by Brexit uncertainty and stamp duty...
Prices and transaction volumes have both fallen again in Prime Central...
The ‘lower priced’ 80 per cent of homes in prime central...
We all know that first-time buyers have had a tough time...
There was a long-awaited return to the House of Commons this...
Last weekend a story by The Sunday Times’ Deputy Political Editor...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
Let's be honest – landlords are the lifeblood of any letting...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
A client account is essential to your lettings business, but the...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
It’s no secret – 2023 is a difficult year for the...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
An anti-money laundering (AML) expert has queried why there is a...
It’s tempting to think that Michael Gove’s proposed clampdown on Airbnb-style...
When we talk in general terms about the UK housing market,...
The Law Society is facing backlash from conveyancers after issuing new...
An anti-money laundering (AML) expert has queried why there is a...
A new analysis of the cost-of-moving suggests that the typical seller...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you and what does it say on your...
.jpg){kind=avatar}
Join the conversation
No to a stamp duty holiday but yes to a total revamp of this awful "tax on homes". It should be cut, at least halved right across the board. The housing market is one of the biggest drivers of the UK economy
and when allowed to operate without this huge encumbrance, will be a boost with the many spin offs that it gives, avoiding the recession that is coming. At the same time, this will allow easier movement of labour and allowing people to get on with their lives. High taxation stifles everything.
I wouldn't propose either suggestion to improve the property market. Tax payers money shouldn't be used to prop up the property market just because things are a bit slow. If Jeremy Hunt has any spare cash to throw around I'd like him to stick it all on the personal allowance. Working people will keep more of their income and encourage saving. Raise the threshold to £18,000 p.a and find the money to do it.
What are you talking about tax payers money? This isnt NI or income tax. It's peoples families assets/homes that generations have worked hard for and the government is raiding. Tax should be found in other areas, not politicise family death.
Please login to comment