The Government has indicated that Stamp Duty could be reformed as part of tax changes in response to the coronavirus pandemic.
Conservative MP Alberto Costa had written a parliamentary question asking what assessment the chancellor has made of the merits of introducing a Stamp Duty holiday for people purchasing new homes to stimulate the economy after the Covid-19 outbreak.
Responding on behalf of the chancellor, financial secretary to the Treasury Jesse Norman stopped short of ruling out such a change.
He said: “Vital measures to control the spread of Covid-19, such as social distancing, have resulted in a drop in property transactions.
“From May 13th in England, viewings can once again be held as long as social distancing measures remain in place, and people can move house safely.
“The Government does not currently have any plans to change the amount of Stamp Duty on property purchases.
“However, the Government keeps all tax policy under review, including as part of the response to the COVID-19 pandemic.”
A report from the Cass Business School last week urged the Government to extend Stamp Duty relief to “last-time buyers,” while organisations such as Zoopla have suggested reforms to the tax could help boost the market.
Comments (4)
Nothing to see here 😉 I read the article and unless it didn’t report on something else that the Minister might have said I took it as an unequivocal NO!
No, don’t adjust Stamp Duty yet – far too early in the cycle. The sales figures are fine right now. Save the ‘silver bullet’ until it is needed – maybe Spring 2021?
The market seems amazingly stable and prices are firm, with potentially 3 million Hong Kong citizens coming to the UK and with vast numbers of homeowners now ‘mobile enabled’ through home working, this mobility is already stimulating the market in what appears to be the start of a seismic change in the way people live and work.
Recession for economy is like any sickness for body which needs to be treated as soon as possible to avoid further health problems and spread and you suggest to wait until destroy as much as possible?
No, the side effect of the virus could be the housing market over heating, so to use your analogy, let the body recover naturally. If it needs ‘help’ then give it in the form of stamp duty. But that should be the medicine of last resort.