Residential stamp duty:Time for a change

In this report, we are concerned with the impact of the current system of residential stamp duty. Not only does stamp duty have an effect on the housing market, but it also discriminates between both different parts of the country and different household types. Because of the inefficiencies and inequalities of stamp duty the report also explores alternatives to the current system. We demonstrate that even modest reforms can generate significant improvements. The purpose of our report is to consider the economic rationale lying behind stamp duty. We have three broad main aims: •to consider how stamp duty measures up to general principles of optimal taxation, •to consider and quantify, where possible, the effects of stamp duty on the housing market and wider economy, •to discuss meaningful revenue-neutral alternatives to the current regime.