Charcol is urging the Chancellor to amend the “antiquated” rules governing stamp duty in his Budget statement on March 16.
The broker also claims that the misery caused by inheritance tax limit is unacceptable, given that property prices have soared over the last few years, leaving many homeowners, particularly in the south of England, beyond the threshold even before other assets than their home have been considered.
Charcol feels that the leap between bands is too dramatic. For instance, if a buyer considers a house priced at 250,001, they would currently pay 3 per cent in stamp duty, a total of 7,500. Yet if they bought that property for 250,000, they would only pay 2,500.
Charcol senior technical manager Ray Boulger says: “The problem of how to help first-time buyers is a long-running and well-documented one, but its worth pointing out first-time buyers are the lifeblood of the housing market, encouraging liquidity and movement. Restricted liquidity leads to fewer transactions which in turn lessens the amount of tax the Chancellor can reap.
“Imposing this whopping tax on part of people’s estate of the modest homeowner certainly won’t be a vote-winner.”