Tax Day a damp Squib
Tax Day was a bit of a damp squib. For individuals property taxes and Capital Gains taxes relating to property have been left unchanged. Whilst this is welcome news to those with property is it the right thing to be doing right now?
The Stamp Duty Holiday was launched in July 2020 as a short term policy to kick start the UK Housing market after lockdown and to help, in part, guard against house prices falls. Since Stamp Duty Taxes went on holiday house prices have increased significantly as has the level of public debt and in the face of rising house prices and rising levels of housing transactions, the stamp duty holiday was extended.
Whilst few are fans of paying more tax, there is a time and a place. The pandemic has caused financial hardship for many whilst boosting the asset values of others.
Tax Day coincided with the anniversary of the first lockdown, which was billed as a national day of reflection. In my view, it’s a missed opportunity that those who have benefitted over the last year have not been called upon to help those who have not.