Time running out to comment on stamp duty surcharge

There are just a few weeks left for people to have their say on controversial proposals to reform stamp duty.

The Government is currently consulting on plans to levy a three per cent surcharge on buy-to-let and properties being bought as second homes.

The changes to the tax regime were first announced in the recent Autumn Statement and have caused a fair amount of disquiet among those who fear that the shake-up of taxes could have a harmful effect on the property market.

In particular mortgage brokers have warned that the Chancellor’s proposals may have unforeseen consequences.

For example, someone who is trying to sell and replace their current home could be hit with the surcharge if the sale of their existing property falls through after they have already signed for their new purchase.

Meanwhile Richard Lambert, the chief executive of the National Landlords Association (NLA), is concerned that the proposals would put the squeeze on a key part of the property market.

He said: “It has been harder to become an owner-occupier since the financial crisis and harder to get social housing. If you choke off buy-to-let it’s going to become more expensive to bring new stock into the private rented sector.”

Ministers have also come in for criticism for only allowing a relatively small window of time for people to make their feelings known.

The consultation was quietly launched in the period between Christmas and New Year and all comments must be submitted before February 1st.

Further details about how the policy will work in practice would then be expected to follow in the Chancellor’s Budget speech.