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No movement on SDLT continues to hurt first time buyers


Tuesday 9 October 2007

Commenting on the lack of changes to stamp duty land tax in today’s pre-budget report, Grant Thornton Head of Property and Construction, Clare Hartnell, says, “Stamp duty land tax is the best weapon the Government has at its disposal in helping people onto the property ladder and it is amazing that further help to first time buyers has not been offered in the Chancellor’s latest pre-budget report.”

 

"The lack of an announcement on stamp duty land tax is particularly surprising given the Conservative's proposal to exempt anyone who buys their first home for under £250,000 from SDLT. One would have thought that the Chancellor would rise to the challenge and offer a carrot to potential property investors, however, he may feel it too early to be fiddling with stamp duty when the housing market is cooling off.”

 

Hartnell says that the Treasury seems more interested in clamping down on tax avoidance rather than helping first time buyers: “The Government has signalled it will be looking closely at the use of special purpose vehicles to reduce stamp duty land tax and how to extend the disclosure regime to high value residential property transactions. So rather than use the pre-budget report to offer some help to first time buyers, the Treasury is instead trying to recoup revenue it believes it is losing out on as a result of property transactions made through companies.”