Cut Stamp Duty For Over 65s

[bad company]

I wasn’t sure whether to post this here or in NP&E.

This looks like a great way to encourage older people to downsize and free up the property market. Sorry about the paywall though there are ‘ways around’.

https://www.telegraph.co.uk/business/2026/07/29/cu...

[Sport_Turismo_GTS]

Just cut stamp duty for everyone, at least for your main home. It’s a crap tax that inhibits social mobility.

[bad company]

Sport_Turismo_GTS said:

Just cut stamp duty for everyone, at least for your main home. It s a crap tax that inhibits social mobility.

I agree but can our government afford to do that? Some of the cost would be offset by revenue from increased activity in the property market.

[hyperblue]

Would expect that stamp duty is more of a barrier to those upgrading rather than downsizing. People have got be able to buy those big family houses in the first place.

[Callerton]

It's The Telegraph - they are flying a kite.
Zero content.

[MesoForm]

hyperblue said:

Would expect that stamp duty is more of a barrier to those upgrading rather than downsizing. People have got be able to buy those big family houses in the first place.

I think it's more a psychological barrier for the over 65s -
"Do you want to live in a smaller house now your family have their own houses and others may want your house?"
"Sure"
"Great, we're going to tax you £10k for doing so"
"Uhh, maybe not"

[bad company]

Callerton said:

It's The Telegraph - they are flying a kite.
Zero content.

Indeed but it sounds like a good idea to me. From the Telegraph again:-

https://www.telegraph.co.uk/money/property/buying-...

[alscar]

The whole retirement house debacle is another huge issue in itself and another topic.
I wonder just how many over 65’s actively want to downsize ?

[Sport_Turismo_GTS]

alscar said:

The whole retirement house debacle is another huge issue in itself and another topic.
I wonder just how many over 65 s actively want to downsize ?

I think more would consider it, if they weren’t losing £££ in doing so.

[alscar]

Sport_Turismo_GTS said:

I think more would consider it, if they weren t losing £££ in doing so.

Yes maybe - would just like to know some numbers.
I’m 65 this year and have zero intent to downsize.
It’s taken us years living here for the kids to all leave home !

[Panamax]

Sport_Turismo_GTS said:

Just cut stamp duty for everyone, at least for your main home. It s a crap tax that inhibits social mobility.

^^ This.

Government thinks it's being clever hitting foreign buyers with hefty Stamp Duty but the problem is everyone else gets sucked into the whirlpool.

It really is nuts to have a hefty "Moving House Tax".

Just one of the many "South of England Taxes" which enable government to fritter money away up north.

[Olivera]

"Cut stamp duty for over-65s to boost property market"

[CSR Performance]

Sport_Turismo_GTS said:

Just cut stamp duty for everyone, at least for your main home. It s a crap tax that inhibits social mobility.

Agreed. Hannah Fry did a good video on it fairly recently, highlighting the point that it dissuades empty-nesters from downsizing thus limiting supply of family homes and driving up the prices.

There are plenty of opportunities for finding the money elsewhere, many vanity projects that could be cut, but that would be common sense and we have a minute supply of that in this country now.

[LooneyTunes]

hyperblue said:

Would expect that stamp duty is more of a barrier to those upgrading rather than downsizing. People have got be able to buy those big family houses in the first place.

It's not just upgrading - it affects lateral moves as well (e.g. relocation).

Each move generates lots of economic activity. Legal fees, renovation, decorating, etc...

When we bought our current home, part of the calculation was amortising the SDLT over the length of time we expected to be there. At some point a lateral move to a smaller, more central/better connected, location would make sense but the prospect of paying out significant sums of SDLT makes it very unattractive.

[Gary C]

alscar said:

The whole retirement house debacle is another huge issue in itself and another topic.
I wonder just how many over 65 s actively want to downsize ?

While not (yet) over 65, we downsized recently now that all the kids have left.

We had a 5 bed house on an estate and have moved to a 4 bed in the country and the loss of £20K just to move was a bitter pill and we did keep flip flopping between move and stay and that was part of the reason. In the end, a slightly smaller house but with more land and in the country was too big a lure but it was close.

I'm sure that this move would encourage people, maybe not to move to cheaper houses, but maybe like us, 'smaller' houses in different places.

Our old house is now home to a family of 5 with kids from ~5 to 12 which is what its perfect for.

Edited by Gary C on Wednesday 29th July 12:27

[Boz123]

What, a small charge on the decades of tax-free house price growth the over 65's have benefitted from? The heart bleeds.

They can start by paying the proper amount of income tax to begin with - get rid of NI as a separate tax (both employee and employers) and build it all into income tax.

[Sport_Turismo_GTS]

Boz123 said:

What, a small charge on the decades of tax-free house price growth the over 65's have benefitted from? The heart bleeds.

They can start by paying the proper amount of income tax to begin with - get rid of NI as a separate tax (both employee and employers) and build it all into income tax.

[Tallboy]

Sport_Turismo_GTS said:

Boz123 said:

What, a small charge on the decades of tax-free house price growth the over 65's have benefitted from? The heart bleeds.

They can start by paying the proper amount of income tax to begin with - get rid of NI as a separate tax (both employee and employers) and build it all into income tax.

Probably the best answer to that!

I'm not in this age group but looked to down size to go travelling. The 20K spend including stamp makes it a non starter, so we're doing things differently.

I've already paid stamp 6 times in my life, predominately moving for work.

After a large proportion of my working life being in the top 5% of tax payers I'd be interested to know what the 'proper' amount of income tax we should have paid.

How much of our money do you want? We already cover circa 50% of income tax receipts so what's this number, 60-70%?

And at what point do you think we go - bugger it lets go travelling instead?

[Josemartinez]

Panamax said:

^^ This.

Government thinks it's being clever hitting foreign buyers with hefty Stamp Duty but the problem is everyone else gets sucked into the whirlpool.

It really is nuts to have a hefty "Moving House Tax".

Just one of the many "South of England Taxes" which enable government to fritter money away up north.

100% agree! As an example imagine paying 2% of the value of your new to you car over £12k to the government. It's stupid.

I'm way off retiring but we said the other day we would downsize and spend the difference travelling. If I had to give some of that difference to HMRC that would piss me off.

[NDA]

The over 65's (by and large) are living off their already taxed savings - the thought of handing over tens of thousands of more of their net savings to the government, just for moving, probably doesn't appeal.