Cut Stamp Duty to ease the burden of “Britain’s dysfunctional property tax system”
22 September 2022
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Press Release
Energy and Environment
Andy Mayer quoted in The Times and City AM
22 September 2022
Economic Theory
11 November 2024
Matthew Lesh writes for City AM
The IEA’s Head of Public Policy Matthew Lesh has written for City AM encouraging Liz Truss to cut stamp duty in Friday’s mini-budget.
Setting out the theoretical case for abolishing the tax, Matthew wrote:
“Stamp duty is this country’s worst tax. It makes no sense to tax a house based on how often it changes hands.”
Disputing claims that Stamp Duty will increase house prices, Matthew noted:
“[A study], of the UK’s 2009 stamp duty holiday, found that for every £1,500 in reduced stamp duty the impact was £600 higher prices. But that means, post-tax, buyers were £900 better off. This means cutting stamp duty increases affordability.”
As Matthew argued later in the piece, fundamental planning reform is needed to tackle Britain’s housing crisis, but a cut in Stamp Duty would be a first step in the right direction.
The full article can be read here.
Setting out the theoretical case for abolishing the tax, Matthew wrote:
“Stamp duty is this country’s worst tax. It makes no sense to tax a house based on how often it changes hands.”
Disputing claims that Stamp Duty will increase house prices, Matthew noted:
“[A study], of the UK’s 2009 stamp duty holiday, found that for every £1,500 in reduced stamp duty the impact was £600 higher prices. But that means, post-tax, buyers were £900 better off. This means cutting stamp duty increases affordability.”
As Matthew argued later in the piece, fundamental planning reform is needed to tackle Britain’s housing crisis, but a cut in Stamp Duty would be a first step in the right direction.
The full article can be read here.
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