Stamp Duty Friday, 16th October 2009

The Government should extend its Stamp Duty holiday beyond December 31, and also to increase the threshold where the tax becomes payable.

As the Stamp Duty break had cost the Chancellor just £200m in the year since it has been introduced, it seems a small proice to pay for getting the economy moving by helping first time buyers.

Although the Stamp Duty holiday has meant that properties up to £175,000 have been exempt would it not be a great idea to raise the threshold to £250,000. This would make maybe up to 60% of all properties currently on the market exempt from Stamp Duty.

In this way the Stamp Duty holiday would further benefit many first-time buyers and and contribute to the upturn in the housing market. Extending the holiday beyond December 31 and making it applicable to all properties under £250,000 would provide an important impetus to the fragile housing market and a welcome shot in the arm for the economy.

This would be a positive move by the Government who must have the courage of their convictions and stand by this initiative. The housing market recovery is still in its early stages and the removal of this tax relief now could negate any headway that has been made over the past few months.

The time has come to reassess Britain’s most unpopular tax.