Jacob Rees-Mogg calls for stamp duty reduction

Rees-Mogg calls for stamp duty end

Jacob Rees-Mogg, whilst denying he is set to run against Theresa May as Conservative leader, has indicated that if he were in the seat, the current stamp duty regime would be scrapped “as a matter of urgency”.

Speaking to the Daily Telegraph, Rees-Mogg reiterated, amidst rumours to the contrary, that he has no plans to run for the Tory leadership, but insisted his party should move to a policy of “low taxation … in terms of [property] ownership”.

He wrote:

"The recent cuts in corporation tax, one of George Osborne’s most successful policies, has more than doubled the tax received by the government.

This has helped businesses afford to invest and employ people leading to a stronger economy and allowing the Government more easily to finance its expenditure. This example ought to be applied to income tax and, as a matter of urgency, to stamp duty.

Rees-Mogg’s comments will come as music to the ears of the thousands of buy-to-let landlords who have been hit by the 3% stamp duty surcharge imposed since April 2016.

Andrew Turner, chief executive at Commercial Trust, commented:

This is encouraging news. It suggests that Parliament is listening to our industry and is aware of the problems the change has caused for landlords and tenants as a result.

“There have been a number of reports recently highlighting a slowing down in the number of buy-to-let property purchases since the levy was introduced.

“Increased costs for landlords was only ever going to drive up rents, because buy-to-let is a business and without profit any business loses viability. With fewer properties available, rent increases may grow even further.

“Any backtrack on stamp duty would go some way to ease these problems, but this is only part of the governments tax-grab on the buy-to-let industry.

“However, at the moment this is all conjecture and actions speak louder than words, but it is good to see a senior politician acknowledging one of the industry’s biggest challenges and explicitly suggesting a change is needed.

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.