First-time buyers aided by revised tax system

07-Mar-2006

Yesterday Gordon Brown was urged to consider a complete overhaul of stamp duty to give first-time buyers a helping hand.

The Royal Institution of Chartered Surveyors (Rics) called on the chancellor to change the 'antiquated' system, which causes problems for aspiring homeowners wishing to get their foot on the first rung of the property ladder.

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Figures reveal that 95 per cent of chartered surveyor estate agents believe that stamp duty is "in urgent need of review".

Rics states that instead of the current system where homebuyers pay a percentage of the value of the property, the government should introduce an income tax-style system with a percentage levied on stepped amounts instead.

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Surveyors claim that the present "slab" approach has led to problems for first-time buyers, house price clustering, tax avoidance and impeded mobility.

"Our proposed system would be fairer for the house-buying public, ensuring that those who can pay, do pay.

"It would create more movement in the property market, and it would be revenue-neutral, which should appeal to the government," Rics chief executive Louis Armstrong explained.

It is anticipated that the proposed system would exempt almost 50 per cent of house transactions, compared to the current slab system which has the potential to affect around 65 per cent.

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