04 September 2009
Extension of stamp duty holiday 'helpful but not enough'
While the extension of the stamp duty holiday implemented by the government will help the housing market, it is not in itself enough to make the system fair.
This is according to Ray Boulger of independent mortgage specialists John Charcol, who said it leaves in place a system of unfair levies.
In a Budget announcement made in April, the Treasury revealed it was extending its suspension of stamp duty on properties up to £175,000 until December 31st.
Following this, buyers who were previously exempt from paying the duty on properties worth under £175,000 will go back to being charged one per cent for homes with a value greater than £125,000.
Mr Boulger said: "I think what the government did in terms of extending the limit to £175,000 was certainly helpful but it was only a small part of what they should have done."
He added that, for him, the "big problem" with stamp duty in the UK is that it is "grossly unfair" due to the way it is calculated.
The government should therefore re-examine the basis of the tax, Mr Boulger claimed.