Stamp Out Stamp Duty - Democracy 3.0

Campaign author: andrewhawkins2001

Sector: Society

Stamp Out Stamp Duty

Stamp Duty is a major factor behind the housing crisis and needs to be scrapped ASAP

£112.00 raised
  • £20,000.00
  • 3 months 23 days
  • 14 signatories


Stamp Out Stamp Duty

Where to begin? Stamp Duty is so distortive, inequitable and deserving of being scrapped that it is hard to find anyone willing to defend it.

The Economist (24 Nov 2018) describes it as 'inefficient and unfair'. The RICS has called for a full-scale review of it. An LSE study in 2017 said it 'contributes to England’s dysfunctional housing market' by limiting the ability of first time buyers to buy without parental help. It also, as the LSE points out, deters older home owners from downsizing by making them 'write a cheque to HMRC when they buy their new home'.

Stamp Duty is a tax on ambition and a disincentive to people moving into more appropriate post-family space. It raises between £8bn and £12bn annually for the Treasury but stifles economic activity in other areas. Some economists believe that total Treasury revenue would actually be higher if Stamp Duty were scrapped, by virtue of that increased economic activity.

Stamp Duty also holds back choice and constrains demand for new housing, especially in respect of retirement communities. Scrapping it would lead to a more mobile housing market as older owners downsize and free up homes for those lower down the housing ladder. Everyone ultimately benefits.

There is near unanimity that Stamp Duty needs scrapping. The only question is what, if anything, should replace it. The impact of the current regime is so destructive to the social and economic fabric of the UK that almost anything is better than the status quo.

Please sign and donate to the campaign to scrap this inequitable, damaging and outdated tax.

New article reinforces iniquity of stamp duty

An article in The Telegraph published on 14 May 2022 makes the point forcibly about the iniquity of stamp duty:
- it was first introduced in 1694 by William of Orange to finance his war with France
- according to the article economists "are agreed that this is a bad tax", distorting the housing market and making the housing crisis worse
- the Chancellor now uses the tax as a cash cow with revenue raised having more than doubled over the past decade and it now accounts for more than 2% of all tax raised
- of particular concern has been how stamp duty is now payable at thresholds well below average house prices, having a powerfully distortive effect and discouraging people from transacting.
The full article can be found here https://www.telegraph.co.uk/business/2022/05/14/britains-oldest-tax-stifling-housing-market/

update posted on 16/05/2022 09:04

  • Anonymous Comment
    I feel quite strongly about this, it's both a terrible distortion of the housing market but also the government wringing money out of people who are often desperate to get a roof over their head
  • Anonymous Comment
    Stamp duty is legalised theft and should be abolished, it's so unfair
  • Anonymous Comment
    I totally support this campaign
  • Anonymous Comment
    great stuff
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