Property taxes must be fair!

I’m writing this article as the Scottish Parliament is about to announce radical changes to Stamp Duty which will come into effect from 1st April 2015. What is proposed is a progressive system rather than the crude system that operates now under which an increase of just £1 in the sale price can trigger an increase in the amount of Stamp Duty due of up to £40,000. I really hope that the Scottish review will cause the UK Parliament to look again at this grossly unfair tax. The current system is completely illogical and perverse and the consequence is that virtually no sales are agreed at prices that slightly exceed the break points of £125,000, £250,000, £500,000, £1 million and £2 million. Why should a buyer of a property at £250,001 pay £5,000 more tax than someone who buys the identical house next door for £250,000? A millionaire in a 10-bed mansion in northern England will pay nowt! The unfairness of the tax causes enormous resentment and distorts the housing market because people will inevitably reduce their offer to the nearest tax threshold. In years gone by, buyers and sellers could find ways around the problem by selling the fixtures…

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