Government does not plan downsizing stamp duty relief
The government has confirmed it does nor plan to offer stamp duty holidays to encourage downsizing.
It had been suggested that offering older people the option to take a stamp duty holiday could encourage them to move to smaller homes and therefore, free up larger family homes on the market.
However, the Treasury has confirmed that it will not offer a tax break for those who are already generally a wealthy group of society.
“The financial gain that property owners are likely to receive from downsizing will likely outweigh the costs of doing so, particularly as there is no Capital Gains Tax (CGT) on someone’s main residence. Introducing a stamp duty relief for those looking to downsize would likely incentivise few genuinely new transactions, and would incur large deadweight cost,” said the government department.
A recent survey conducted by the International Longevity Centre revealed the most common reason for not downsizing was that the owners could still manage the maintenance of their home with 49 per cent citing this factor while 13 per cent stated the financial implications of moving.