Abolish stamp duty on homes.

Byline: NICKY BURRIDGE

STAMP duty is an "anachronistic" tax on aspiration and should be abolished, property professionals said today.

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) said the way stamp duty was charged distorted the UK's property market.

The groups said 86% of estate agents thought the tax was unfair, while 81% thought reforming it would have a very positive impact on the property market.

In addition, 91% of estate agents also thought the current stamp duty holiday on properties costing up to pounds 175,000 should be extended.

The NAEA and the ARLA have joined forces to call for the tax to be modernised.

Peter Bolton-King, chief executive of the NAEA, said: "Stamp Duty is a barrier to entry for many first-time buyers and is also prohibitive for those looking for a step up the property ladder.

"The time has come to re-assess Britain's most unpopular tax, which is a levy on those aspiring to own their own homes and is manifestly perceived by all those who pay it as being unfair and punitive."

Stamp duty is currently charged at 1% of the purchase price on properties costing between pounds 175,000 and pounds 250,000, although this will fall back to ones costing from pounds 125,000 from the beginning of next year.

People buying a property for between pounds 250,000 and pounds 500,000 have to pay 3% of the purchase price in stamp duty, while the tax is charged at 4% on homes costing more than pounds 500,000.

Opinion - Page 14