Pressure is mounting on the Chancellor to make revisions to stamp duty land tax rates.
The measures introduced in recent years do not appear to have helped first time buyers as much as was intended, whilst on the other hand they dampened the demand for higher value properties as stamp duty costs increased substantially on properties above £1m.
The additional revenues in the form of VAT, income tax and corporation tax that high and ultra high net worth individuals generate alongside their property investments is also considerable. This is becoming increasingly more recognised by countries the world over. Two recent examples are France and Italy. France has just drastically reduced its wealth tax that was introduced in the 80s’, whilst earlier this year Italy launched a new tax friendly residency scheme aimed at HNWs’. Such investors should not be deterred from investing in property in the UK.
Adjusting council tax bands and designing schemes specifically aimed at assisting first time buyers (with the cooperation of banks and developers) could be more effective ways to achieve desired policy objectives.
