Sadly Little Hope of Reform in Stamp Duty Bands or Rates Reform
I hope we’re wrong because the case for reform in Stamp Duty- at least changing the bands and an overhaul of the commercial rates system – is both overdue and badly needed. The inequity of how these taxes sometimes “drag” on the productive use of commercial property is no good to anyone.
Any hope that the Chancellor may announce reforms in his Autumn statement on December 3rd 2014 is slim. Despite the economic recovery and jobs boom. Treasury receipts from taxation continue to be weaker than expected, partly due to a cooling housing market weighing on Stamp Duty revenue.
With the Country sitting beneath such a monumental pile of debt that continues to get bigger, the government has little or no room to manoeuvre. Stamp Duty receipts from land and property did however grow by £100 million in October, an increase of 4% compared with 29% for the fiscal year to date.
The ironies are apparent of this so called “taxless recovery” and fingers pointing at all the new jobs which are low paid or part time meaning a large portion of the new wages generated in the economy do not meet the £10,000 threshold for paying income tax.
The conclusion seems to be that sadly, for now, we will not see any substantive change in Stamp Duty and Commercial Rates-a real shame.