Britain’s newly elected Prime Minister Andy Burnham on Monday ruled out any changes to stamp duty in the government’s next budget, signalling that homebuyers and property investors should not expect relief from the tax later this year.Asked whether the government planned to reform or abolish the levy, Burnham said, “Yes, I can say that quite clearly. That won’t be happening.”He added that the government’s focus was elsewhere. “It’s just not the case that we are bringing forward plans on that scale at this moment in time… What we’re trying to do though is to make taxation fairer.”Burnham has previously indicated that taxes may need to rise to help fund growing public spending commitment, reported Reuters.In its 2024 election manifesto, the governing Labour Party ruled out increasing the main rates of income tax, national insurance and value-added tax, which together account for nearly two-thirds of Britain’s tax revenues. However, Burnham has previously said he may ask people to pay “a little more” in taxes to help meet the costs of an ageing population, rebuilding the armed forces and funding wider investment priorities.
Stamp duty in UK: What is it
Stamp Duty Land Tax (SDLT) is paid on residential property purchases in England and Northern Ireland; the amount depends on the property’s purchase price and whether the buyer qualifies for any reliefs. Buyers purchasing an additional residential property generally pay a 5% surcharge on top of the standard SDLT rates.For buyers purchasing a single residential property, SDLT is charged at 0% on the first £125,000, 2% on the portion between £125,001 and £250,000, 5% between £250,001 and £925,000, 10% between £925,001 and £1.5 million, and 12% on the value above £1.5 million. Eligible first-time buyers receive relief, paying no SDLT on the first £300,000 of a property costing up to £500,000.The tax generated £16.6 billion ($22.1 billion) for the UK government in the last financial year. However, many economists argue that high transaction taxes discourage homeowners from moving, downsizing or relocating for work, reducing the efficient use of housing stock.
