Sajid Javid is considering switching the stamp duty burden from buyers on to sellers as he considers a shake-up of taxes ahead of his first budget as chancellor.
Mr Javid, who moved into Downing Street at the weekend, has said he is “looking at various options” when it comes to stamp duty.
Currently, stamp duty is paid by the buyer on residential properties over £125,000.
There are several bands for stamp duty. According to the Money Advice Service, for a house worth £275,000, the stamp duty owed is calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the final £25,000 = £1,250
Calling himself a “low tax guy”, the chancellor told The Times: “I want to see simpler taxes”.
He also spoke of his intention to make changes to the tax system so that it is “simpler”.
“If you are going to going to have tax cuts, I think you should always be thinking about the lowest paid and about how you can try and help them,” he said.
When asked about taxes for higher earners, he told the newspaper: “Wait and see for the budget…
“But it wouldn’t be any surprise that I think taxes should be efficient.
“We want to set them at a rate where we are trying to maximise revenue, and that doesn’t always mean that you have the highest tax rate possible.
“Generally I want to see lower taxes, but at a level that is going to pay for the public services.”
Mr Javid says he has not yet decided whether to hold his first budget before 31 October – the date the UK is meant to leave the EU.
“When we have the budget, I will be thinking about whether we need to make any changes to the fiscal rules.
“It is obvious to me that when you’ve got some of the lowest rates on government debt this country has ever seen I wouldn’t be doing my job if I wasn’t thinking seriously about how do we use [that opportunity].”
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