The head of a leading global property group has criticised Stamp Duty Land Tax (SDLT), suggesting that the tax is “harmful” to long-term development.
Christian Ulbrich, global chief executive of Jones Lang LaSalle (JLL), added that recent changes to SDLT unfairly penalise investors and second-home buyers.
The comments come shortly after data from the Organisation for Economic Co-operation and Development (OECD) found that Britain has the highest property taxes in the developed world. Their research found that property taxes accounted for 12.7 per cent (£74.2 billion) of the total tax burden in 2014.
Mr Ulbrich has labelled SDLT “politically motivated” and said that the three per cent surcharge imposed upon second home purchases in April 2016 was having “a very strong dampening impact on the market”.
He added: “For long-term development, stamp duty is definitely harmful, because the Stamp Duty in itself doesn’t create any value.
“It’s an additional cost that makes development more unattractive and it has to be considered in the pricing”.
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