Boris Johnson considers AAT recommendations on Stamp Duty liability
Conservative Party leadership contender, Boris Johnson, has confirmed his interest in switching Stamp Duty liability from the house buyer to the seller as proposed by Association of Accounting Technicians (AAT).
Last year Johnson stated Stamp Duty was “absurdly high” and last month he suggested he would consider scrapping it for homes worth £500,000 or less.
Last week Johnson met with AAT and agreed to examine their Stamp Duty recommendation further, requesting further information which has subsequently been provided.
Phil Hall, AAT Head of Public Policy and Public Affairs, said:
“AAT is naturally pleased that Boris has agreed to look at our long-standing proposal to switch Stamp Duty liability from the buyer to the seller. This will save the taxpayer £700m a year by rendering First Time Buyers Relief redundant. It will also protect the £9bn of revenue Stamp Duty generates as it will still be paid in full, simply by different people. It’s much more progressive too, as it will be paid on the lower priced property being sold rather than the higher priced property being bought.”
The idea certainly appears to have the support of home buyers.
Self-employed Tony Richardson, 43, and his partner Caroline Danks, 36, live with their two young children in a three-bedroom terraced house in Plymouth, Devon. They have been considering buying a bigger house for some months are concerned about Stamp Duty costs.
Tony Richardson said:
“One of the things that’s made us delay buying a bigger house is the huge amount of upfront costs we will have to face, legal fees, mortgage arrangement fees and the biggest of all, Stamp Duty. That’s why the AAT recommendation to switch Stamp Duty liability is so attractive – it will mean we pay less as we’d only have to pay it on the house we are selling not on the one we are buying. I hope the new Prime Minister, whoever he is, seriously looks at this because it will make a real difference to people like us.”
Kindly shared by Association of Accounting Technicians