Economics class: Extra stamp duty holiday would raise house prices, say lawyers
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Synoptic questions: demand and supply, interrelationships of markets, AD-AS, macroeconomic objectives.
Click to read the article below and then answer the questions:
Define indirect tax and give two examples of indirect taxes in the UK
Analyse how an extension in the stamp duty holiday may “lead to further increases in house prices”
The stamp duty holiday is predicted to affect the housing market. Using a diagram, explain how the stamp duty holiday may also have an impact on other markets in the UK
“Average UK house prices increased 8.5 per cent in the year to December 2020.” Analyse the potential impact of the house price increase on the macroeconomy. Include the concept of the multiplier effect in your answer
In the fiscal year 2019-2020, the UK Government received £11.6bn from stamp duty. Some people argue that stamp duty should be abolished as it creates distortions in the housing market and reduces the geographical mobility of labour. To what extent do you agree with the view that stamp duty should be abolished?
Elin Egger, Framlingham College