£900m COST OF THE RAID ON STAMP DUTY
This article was published in the Daily Mail October 2nd 2019
It reports on what most Estate Agents have known for a while and what I reported and posted on this web site earlier last year https://www.equusproperty.co.uk/news/what-has-the-stamp-duty-reforms-from-the-previous-chancellor-osborne-done-to-the-property-market/100060
In summary -
“the taxman has faced the biggest fall in stamp duty taking since the financial crisis following George Osborne’s tax raid on £1million homes. Receipts from residential purchases fell 10 per cent, or £905million, to £8.4billion in 2018/19 compared with the previous year, official figures from HM RC revealed.
It’s the biggest fall since 2008 house price collapse and the credit crunch…
HMRC said that the drop was in part by stamp duty relief for first time buyers on properties worth up to £500,000 – introduced two years ago and the devolution of stamp duty in Wales last year…
But is was also triggered by an 8 per cent fall in transactions over £1million. The biggest fall was in London with the amount collected dropping £315million to £4.55milllion. However, there were steep falls across the UK, reflecting a wider slowdown in the property market.
Overall the drop was 6% with the sharpest fall in London and the South East.
It goes to say “the reform George Osborne put in place has backfired and has actually put the cost up for the majority…”
Estate Agents have called for a revers to the stamp duty hikes on the more expensive properties.
The Taxman’s takings
2012 - £4.9billion rising to 2014 £7.5billion rising to 2017 £9.3billion then 2018 £8.4billion (source HMRC)
I’ll keep you posted on this one…….