In Focus: Tax  

Landlords favour stamp duty and council tax cut

Landlords favour stamp duty and council tax cut
 Credit: Joe Giddens/PA Wire

Two-thirds of landlords would favour the abolishment of stamp duty and council tax, according to research.

A survey commissioned by FJP Investment found 67 per cent would support the chancellor abolishing stamp duty and council tax in today's Budget, in favour of a single property tax payable by the homeowner.

Meanwhile, eight in 10 (78 per cent) wanted the government to extend the stamp duty holiday beyond March 31.

More than 340 landlords who own at least two investment properties took part in the research.

The finding came as the Institute for Fiscal Studies (IFS) similarly suggested the government could abolish stamp duty and reform council tax to kickstart the economy following the pandemic.

According to the IFS, stamp duty is a “particularly damaging tax” and by abolishing it the government could help to stimulate the economy.

Scrapping it could be coupled with a reformed council tax which could be used to replace any lost revenues, it added.

The survey also found 71 per cent of landlords and property investors felt they had been “unfairly targeted” by the government through new regulations and tax reforms since 2016.

Since April 2016 those buying a residential property in addition to one they already own have had to pay 3 per cent on top of stamp duty rates while seeing their interest rate relief cut.

Two-thirds (67 per cent) said they would consider other forms of property investment that do not incur the same taxation and complexity as buy-to-let and second home purchases.

Jamie Johnson, chief executive officer of FJP Investment, said: “After years of reform and regulation, the appeal of buy-to-let investments is clearly on the wane.”

He added: “Landlords and property investors are clearly hoping for bold tax announcements that will support their needs and encourage long-term property investment. If these are not delivered, we could see a mass exodus of investors from the buy-to-let sector.”

chloe.cheung@ft.com

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