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High stamp duty could be countered by cheap mortgage

Date: Tue, 07 Mar 2006

Changes to the stamp duty tax could be offset by a competitive cheap mortgage deal.

The Royal Institution of Chartered Surveyors (RCIS) is calling on the government to consider reforming the current stamp duty tax, in order to ensure that first-time buyers are not priced out of the market.

The RCIS believe that the new tax should be based on a marginal system, with the starting threshold raised to £150,000 and a marginal rate of 5.5 per cent introduced.

RICS chief executive, Louis Armstrong, said: "Our proposed system would be fairer for the house-buying public, ensuring that those who can pay, do pay. It would create more movement in the property market, and it would be revenue- neutral, which should appeal to the government."

The proposed changes could mean that people higher up the property ladder are forced to pay out more when purchasing their next home. However, shopping around for the best cheap mortgage offer could help to offset some of this additional cost.


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