Feb 11
11
The abolition of stamp duty won’t stabilise the property market
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Published by City Wire
on Friday, 11 February 2011 by Sarah Miloudi
on Friday, 11 February 2011 by Sarah Miloudi
Proposals to scrap stamp duty tax in the UK should bring property into line with other classes of asset – in theory. But the Organisation for Economic Cooperation and Development (OECD) proposition to ditch the tax is unlikely to gain significant traction.
According to the OECD, stamp duty – which can add thousands of pounds to the cost of purchasing a home – should be abolished and replaced by an annual charge.
The Paris-based organisation believes the change could put an end to the excessive consumption of housing as a short-term investment as well as triggering an improvement in labour market mobility.
