A two-tier system, and marginal... like income tax (if your house costs £200,000, the 2.5% would apply to the £50,000 falling into that band).

• to £150,000 - 0%
• £150,001 to £250,000 - 2.5%
• from £250,001 - 5%

Clearly, almost everyone would gain from a reduction if the system was replaced in the way RICS suggests... except the Treasury, which would lose 24% of its current Stamp Duty haul. Given the Government's huge Stamp Duty cash grab in recent years, pleading poverty would leave the Treasury on rocky ground.

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