OECD calls for abolition of stamp duty

(FTAdviser): OECD economists speaking at the launch of the OECD’s report, Housing and the Economy: Policies for the Renovation, said the abolition of stamp duty would reduce barriers to entry in the housing market. Asa Johansson, OECD economist, said stamp duty should be replaced with an increased council tax where part of the funds went to local councils and part to the Treasury. She said: "I think stamp duty should be removed and replaced with a property tax based on the value on the house. It adds on costs for people entering the market." Johansson proposed replacing stamp duty with a yearly tax, similar to council tax but with part of the funds going to the council and part to the Treasury.

She acknowledged such a tax would have the most impact on those home owners who are asset rich and cash poor but said a revised taxation system would be fairer as it would not penalise those who engaged in property transactions.

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