Back in 1993 there was only one rate of Stamp Duty – 1% – and it kicked in at £60,000, which was more than the average house price at the time.
Now we have five rates: 1%, 3%, 4%, 5% and 7%. More than two thirds of families pay it when they move and 183,000 a year pay the punitive 3% rate or even more
Use the map above to find out where Stamp Duty hits hardest – click on the councils to see the figures
Stamp Duty is an enormous problem for first-time buyers. If they are saving up for a 10% deposit, for example, having to find another 3% on top of that creates is a challenging obstacle on the way to their dream of owning their own home.
It creates problems for anyone with a growing family and anyone who needs to move to take a new job. And Stamp Duty also discourages elderly people from downsizing to a smaller property more suitable for their needs. They will avoid moving if it means paying thousands of pounds in extra tax.
The structure of the tax is a mess. If you pay £1 over the £250,000 threshold, you will pay three times as much in Stamp Duty.
Two major recent reviews of the tax system – the 2020 Tax Commission from the TaxPayers’ Alliance and the Institute of Directors and the Mirrlees Review from the Institute for Fiscal Studies – concluded that it should be abolished.
Research Note 128 | 06 August 2013: Revealed: More than a quarter of home-buyers hit with a Stamp Duty bill for £7,500 or more (PDF)
Stamp Duty – a counterproductive tax. A Proposal for Reform by the TaxPayers’ Alliance
Research Note 129 | 23 August 2013: Three in ten homes to suffer Stamp Duty hike by 2017
Send a message to your MP and help us stamp out Stamp Duty.