You are here: Home - News -

Fears raised over reports of higher taxes

by: By Ben Marquand
  • 17/11/2003
  • 0
Rumours the Government may seek extra tax revenue from the housing market at the next Budget have be...

Rumours the Government may seek extra tax revenue from the housing market at the next Budget have been met with concern by FPDSavills.

The property services firm warned that further taxation at a time when the market is cooling could destabilise prices and damage the economy. Fears have centred on a rise in stamp duty and a new levy of capital gains tax on main residences, which are currently exempt.

Richard Donnell, director at FPDSavills Research, said: “The housing market already generates significant sums of tax revenue, and could raise even more. However, if the net result of higher taxes is a further restriction on supply, then this will simply support high house prices and make residential values even more volatile. There seems to be a potential conflict between the need for extra tax revenue and the Government”s desire to see a less volatile housing market.”

Taxation from the housing market last year totalled £4.5bn, which was 3% of total tax revenues. Most of this came from Stamp Duty (77%), with the rest split between Capital Gains (4%) and Inheritance Tax (19%).

However, Andrew Clare, chief economist at Legal & General, said: “The Government is making a lot of money from the housing market, but it will need to boost its finances further with either a higher bond issuance or steeper taxation. I think any shortfall will predominantly be made up of borrowing and not taxation.”

See Mortgage Solutions Bulletin, (10 November) for more information on industry lobbying against further homeowner taxes.


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:

Universal Building Society Universal Building Society has announced the appointment of Kevin Basey ...