With a nod to Adam Smith Scottish Legislators have announced that next Spring Stamp Duty will be replaced with a Transaction Tax. This will likely benefit the average Scots house buyer and, in particular, those struggling to get onto the first rung of the housing ladder. Those in the market for a mansion will get stung for more tax. In July we wrote that the slab based approach of Stamp Duty was acting as a brake on the local housing market. Will we follow the Scottish lead? Of tax Adam Smith famously said:-
“The subject of every State ought to contribute towards the support of the government, as nearly as possible, in proportion…to the revenue which they respectively enjoy under the protection of the State”
With a General Election looming in England Stamp Duty reforms could become a political hot potato!