Cordelia Smith explores the practical alternatives to SDLT abolition in FT Adviser
Cordelia’s comments were published in FT Adviser, 27 October 2025, and can be seen here.
Cordelia Smith, Associate in our Residential Property department Property department, explores why abolishing SDLT is not a cure-all for our complex property problems.
She explains that while political promises to scrap Stamp Duty Land Tax (SDLT) sound appealing, the reality is far more complicated. Since its introduction in 2003, SDLT has been subject to constant amendments and reliefs, creating a system that confuses buyers and advisers alike. Cordelia highlights that this complexity often leads to mistakes even among high-profile figures showing why reform needs careful thought rather than blunt abolition.
Reflecting on the Covid-19 SDLT “holiday,” Cordelia notes how temporary relief spurred a surge in transactions but also inflated house prices, particularly in the South East. She warns that removing SDLT entirely would likely repeat this pattern, driving prices higher in already unaffordable areas and leaving a £12 billion gap in HMRC’s revenue. In her view, such a move risks destabilising the market rather than solving its underlying issues.
Cordelia highlights that replacing SDLT with alternative taxes would be politically fraught. Options like a capital gains tax on property sales or a house-value levy would hit older homeowners hardest and face strong opposition. She stresses that the real challenge lies in addressing the housing supply crisis: too few starter homes, insufficient family-sized properties, and older homeowners reluctant to downsize due to costs, including SDLT. To encourage movement, she suggests targeted relief for downsizers as a more practical solution.
Ultimately, Cordelia explains that any reform must go beyond attention-grabbing promises. While abolishing SDLT might appeal to voters in the short term, she argues that it risks long-term disruption without tackling structural problems. A nuanced approach focused on stimulating supply and easing barriers for key groups offers a more sustainable path forward than blunt tax abolition.
Read the full article on the FT Adviser website [subscription required].