Julian Jessop quotes IEA research in CapX piece
“Let’s start with why Javid was right not to support this switch. Currently, the purchaser of a residential property in England or Northern Ireland is liable for Stamp Duty Land Tax (SDLT), with first-time buyers treated more favourably. However, the people who ultimately bear the economic burden of a tax can be different from those on whom it is initially imposed. This is not widely understood, regrettably, in the case of corporate taxes. But most can see that the costs of indirect taxes, such as VAT, are usually passed on to consumers.”
“So, would there have been any merits in changing this? There are two main arguments in favour of switching liability, both based on the idea that the seller is typically in a better financial position than the buyer.”
Julian concludes by quoting IEA research, he writes “I recommend the liberating proposals summarised in ‘Raising the Roof’, by Jacob Rees-Mogg and Radomir Tylecote, published by my friends at the IEA. These proposals, which include meaningful cuts in stamp duty and a fundamental review of the planning system, are just the sort of the bold measures required.”
Read the full piece here.