Scrapping stamp duty ‘would benefit 75% of UK households’
Summary
A new Compass report proposes replacing stamp duty and council tax with a flat-rate proportional property tax charged annually at 0.48% of property value. The report argues this would leave most UK households better off, raise additional revenue, and require primary legislation plus updated property valuations to implement over two to three years.
Why it matters
Any reform of stamp duty and council tax would affect residential transactions, valuation practice and the wider tax treatment of owner-occupied and investment property. Surveyors may also see increased demand for up-to-date property valuations if a value-based annual tax were introduced.
Key points
- Compass proposes a flat-rate proportional property tax to replace council tax, stamp duty and the bedroom tax.
- The report claims 75% of households would be better off and HMT revenue would rise by £5.6 billion annually.
- Higher rates would apply to second homes and overseas buyers, with exemptions on undeveloped plots removed.
- A deferral scheme is suggested for asset-rich, cash-poor owners, and protections are proposed for renters.
- Implementation would require primary legislation and up-to-date property valuations.
Organisations:
Compass, HM Treasury, Rightmove, Zoopla, OECD
Regulations:
council tax, stamp duty, bedroom tax
Locations:
UK, London, south east of England, Ireland, Sweden, New Zealand
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