The Chancellor needs to look at stamp duty in the £1 million to £3 million price bands to ensure that people who want to buy a family home in London are not penalised to the extent that they think twice about moving. The current stamp duty arrangements at the top end of the market are also acting as a disincentive to sell. This has not only hit tax revenues but has also had a major impact on related industries, from construction, to furnishings and all services related to buying a home.
The Treasury should review the impact of Stamp Duty on London's property market given recent political and economic changes according to London Chamber of Commerce and Industry. The current system of Stamp Duty Land Tax was announced in September 2014 by the then Chancellor, George Osborne. Mr Osborne's reforms took away the "slab structure" of charging tax according to a percentage of the total cost of the property (within bands), instead charging in a similar way to income tax. Since then however, some estate agents and developers have reported a fall in sales of properties in the new higher £1.5million bracket - as well as a reported increase in the wealthy renting rather than actually buying.