Four out of ten people say that stamp duty should be completely eliminated and replaced by capital gains tax for the benefit of homeowners, the study says.
Such a move would be highly controversial, as although it shifts the tax burden from buyers to sellers who have benefited from home ownership, it could make them pay 28 percent of the profits that could reach hundreds of thousands of pounds.
Thomas’ Movement Survey of Moving Ward asked 2,000 people about stamp duty and other questions on the property market.
It stated that 38 percent of respondents agreed that the stamp duty should be abolished and replaced by a tax on the sale of all property, including the main house.
The study calls for first-time buyers not to pay stamp duty as home relocation costs rise.
Such a move would change it from property taxes to property taxes.
The survey also said that more than half of respondents – 59 percent – believe all first-time buyers should be completely exempt from stamp duty, raising the current zero percentage point from its current level of up to £ 300,000.
Anthony Ward Thomas, of Anthony Ward Thomas eviction, said: ‘The first buyers are the blood of the housing market and we need a lot of them to keep everything running smoothly on the level.
“However, the cost of relocation is risky – not just about finding a deposit and having a high enough salary to get the mortgage you need, there are all other transfer costs, such as stamp duty.”
‘Changing the purchase tax – stamp duty – and one for sale – Capital Gains Tax – makes a lot of sense.
“Buyers will already have benefited from the increase in the value of their homes so paying the rent for that, rather than the place of entry, seems to be a lot better.”
The findings from the survey – where 28 percent of respondents relocated last year – suggested a change in tariffs would help increase the cost of buying a home.
The study required first-time buyers to be exempt from paying any stamp duty.
First-time buyers have not been taxed up to £ 300,000. However, due to housing inflation in recent days, first-time buyers in a growing number of areas may be paying more than this.
Playing stamp duty can be very confusing, often involving some people paying more than before and tax holidays have been repeatedly blamed for misleading the market.
Moving on capital gains tax for homeowners can lead to further divisions, and those on the property level who stay on long-term profits often end up in the hundreds of thousands of pounds.
Capital gains tax is currently paid on property at a rate of 28 percent for high-level taxpayers, and 18 percent for low-income taxpayers. However, capital houses are not exempt from capital gains tax through Private Housing Assistance.
What tax would the sale pay if the main housing relief was removed?
The chief accountant has calculated the amount of tax that a person selling property worth £ 500,000 would pay if the capital expenditure was removed.
There are currently no proposals to change the way the main housing assistance works.
However, if such a change was introduced, accountant Blick Rothenberg had worked with some statistics to explain how it would work.
It stated that if the Government cancels the residential settlement, a person who sells his house for £ 500,000 and earns a capital of £ 150,000 – assuming he bought the property for £ 350,000 -, he will be liable for a profit of £ 38,556.
This is calculated by taking a capital profit of £ 150,000 and providing an annual capital relief of £ 12,300 capital. Profits are then taxed at 28 percent.
28% of the capital gains tax rate applies after the £ 37,700 basic tax zone is spent, which will also include any income a person earns.
In this example, the individual has a salary that has fully utilized their basic levels and therefore the benefit will be taxed at full 28%.
Under current land tax laws, a person who buys property for £ 500,000 will pay £ 15,000 stamp duty.
Nimesh Shah, of Blick Rothenberg, said: “Any move to cancel housing relief will be controversial and face strong opposition.
‘Pushing the tax burden on sellers rather than buyers can be a barrier to moving home.
‘For a long time people have been relying on affordable housing to raise housing levels, for the benefit of banks without paying taxes, and re-investing in larger assets.
“Full proposals to restructure the tax system would need to be carefully considered – in my opinion, it would not be fair to completely abolish housing and one option is to have a lifetime limit on the benefits of tax-free capital on residential property – regardless of whether the property is your main residence or not.
“In addition, the Government would need to introduce a form of limited relief where taxable profits are reduced depending on how long the property has been owned.”
Jeremy Leaf, real estate agent for north London and former RICS housing chairman, said: “The most important thing to consider when considering any changes in the housing market is what will be the result of transactions.
‘As it stands, stamp duty rates are not accompanied by inflation; The result is that the Government treasury has been increased by a significant increase in the number of transactions in the past year, in addition to paying stamp duty tax.
“The situation is likely to change now due to rising cost of living having an impact on transactions and transaction numbers. It is likely that the Government will not want to endanger a well-paid person unless it can be shown that it can earn at least that amount, or even more, by changing the system. now.
“In terms of changing stamp duty on purchases and capital gains tax on sales, there is some significance in the notion that those who have made a profit should bear the brunt of the cost.
“The idea needs further research to make sure it doesn’t endanger the market and first-time buyers. There must be some kind of taper aid so it doesn’t become a barrier to moving;
Stamp duty burden
Stamp duty rates
The amount of stamp duty that the buyer pays increases as the value of the property increases
- Next £ 125,000 (part from £ 125,001 to £ 250,000) – 2 percent
- Next £ 675,000 (parts from £ 250,001 to £ 925,000) – 5 percent
- Next 575,000 pounds (parts from £ 925,001 to $ 1.5 million) – 10 percent
- Remaining amount (part over £ 1.5 million) – 12 percent
The amount of stamp duty that buyers pay has increased following a sharp rise in house prices.
Although no stamp duty is paid to the home to the value of £ 125,000, rising house prices have pushed more property to sell beyond this previous stamp duty threshold.
It means that more and more homebuyers are forced to pay stamp duty – and more.
This is because stamp duty rates are charged as a percentage of the value of the property in certain brackets.
The percentage charged in these brackets increases as the value of the property increases.
A Treasury source stated that although it puts all taxes under review, it has no ‘current plans’ to make the main house pay capital gains tax.
There have been many changes in stamp duty in recent years, including the abolition of the old ‘slab system’, in which the percentage of rise was charged at full property cost.
There was also the introduction of an additional 3 per cent payment for those buying a second home or investment property.
In the Covid disaster, there was a recent stamp duty holiday to help home buyers and boost the property market during the disaster.
The tax was estimated at zero for the first 500,000 pounds of property purchase price.
This meant that buyers who complete a home purchase for less than £ 500,000 before July 1, 2021 did not pay stamp duty, while those who bought more expensive homes also saved a large portion of their rent.
Migrants are more likely to turn to family and friends for removal proposals than the internet, according to the study
Anthony Ward Thomas’ study also found that 58 percent of respondents wanted inheritance taxes abolished.
And it claimed that migrants are more likely to turn to family and friends for withdrawal proposals than the internet.
Respondents were asked various questions about their own home migration as well as their views on the broader issues surrounding the housing market.
More than a quarter of respondents have moved in the past 12 months, with 43 percent choosing a company to remove people based on a suggestion from family or friends.
A quarter of respondents were motivated by costs when choosing a removal company, while nearly a quarter – at 23 percent – made their decision based on the company’s reputation.
The relocation cost typically costs around £ 1,200, including packaging materials and insurance, according to the General Removal Group.
One in ten of the study respondents said they would never use a removal company, either preferring to move on their own or not move at all.
Mr Ward Thomas added: ‘Anyone who has tried to move himself will know what a thankless job it is. It is a sad task, it takes longer than you think and it is best left to professionals – we should know, as we deal with 300 steps per week.
‘If any of your valuables are broken, you may have trouble claiming your insurance; using a reputable company will mean that everything is full of care and your move is insured. ‘
He clarified that since 38% of respondents are looking for an online removal company, there is a need to be careful.
“The overcrowded housing market for the past 18 months has made it difficult to hire reputable companies as they tend to get faster positions, with migrants often being left unattended by reputable companies,” he said.
Mr Ward Thomas warned against using a reputable company: ‘Unfortunately, we often receive calls from frustrated migrants who are frustrated at the last minute.
‘You could end up being sued by your buyer if you can’t leave the house within the allotted time because your withdrawal company did not happen.’