Boris Johnson could implement tax changes which would impact landlords now he is Prime Minister.
Johnson has previously discussed his intentions to make sellers in England pay stamp duty instead of buyers, as this would increase the tax take for the Treasury by an anticipated £700 million a year.
Johnson’s plan would add £7,367 to the selling costs of an average priced £197,349 terraced house in England if stamp duty continues to be charged at the same rates.
Tax experts at the Association of Accounting Technicians (AAT) say Johnson seems to have taken a liking to the idea which they came up with a few weeks ago.
He has already discussed the proposal with them and requested further details so he can include the measure in a tax and spending review he intends to make prior to a first budget in the autumn.
“The AAT is naturally pleased that Boris has agreed to look at our long-standing proposal to switch stamp duty liability from the buyer to the seller,” said Phil Hall, head of public policy and public affairs at the AAT.
“This will save the taxpayer £700 million a year by rendering first time buyers’ relief redundant.
“It will also protect the £9 billion of revenue stamp duty generates as it will still be paid in full, simply by different people. It is also much more progressive as it will be paid on the lower priced property being sold rather than the higher priced property being bought.”
The finer details of the measure have not been revealed, but currently, landlords pay a 3 per cent stamp duty surcharge when buying a property to rent.
Anyone purchasing a buy to let home pays standard stamp duty rates unless another landlord is making the purchase.
Boris Johnson was elected as prime minister on 23 July, further details of these proposed changes will become apparent in the coming weeks.