Lib Dems Say Structure Of UK Stamp Duty Causes Tax Evasion

by Jason Gorringe, Tax-News.com, London

07 June 2002

In an interview with the Financial Times this week, Liberal Democrat Spokesman, Matthew Taylor warned that many UK householders are committing tax evasion in order to avoid punitive stamp duty payments.

Citing the latest Land Registry figures on the topic, Mr Taylor revealed to the FT that the ratio of UK homeowners selling their houses for under the threshold for stamp duty (currently £250,000) has nearly doubled since Labour came to power in 1997.

Calling for a gradual abolition of the tax on house sales, which brings the Treasury some £3 billion per year, Mr Taylor argued that: 'The evidence is absolutely clear that the ludicrous structure of stamp duty is creating massive tax evasion.'

Common dodges employed by UK homeowners, according to the FT, include lowering the sale price to just under the £250,000 threshold, but then recouping the difference by including features normally part of the asking price - such as kitchen units - as 'fixtures and fittings'.

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