Sellers would pay their tax from proceeds rather than requiring new capital.
Meanwhile the Treasury would maintain its revenue stream, potentially seeing it increase as transaction volumes rise.
Critics might argue this would lead to higher asking prices as sellers attempt to recoup their tax liability. However, market dynamics suggest otherwise.
Sellers already factor in their next purchase's stamp duty when pricing their property. The key difference is timing, paying from proceeds rather than requiring new capital.
Looking ahead
The upcoming Budget represents a perfect opportunity to implement reform for the property market.
Yes, there are other pressing issues – the proposed changes to non-dom status and punitive capital gains tax increases among them.
However, reforming stamp duty could be the single most effective measure to stimulate the property market and, by extension, the broader economy.
Our property system needs modernisation to remain competitive in an increasingly global market.
Transferring stamp duty liability to sellers isn't just about making life easier for buyers, it's about modernising our property market for the 21st century and ensuring the UK remains competitive in attracting and retaining wealth creators.
The question isn't whether we should implement this reform, but rather: can we afford not to?
Trevor Kearney is founder of estate agent Private Office: Real Estate
