You are here: Home - News -

Stamp Duty receipts up 16% as tax hike takes hold

by:
  • 28/04/2017
  • 0
Stamp Duty receipts up 16% as tax hike takes hold
Stamp Duty receipts were up 16% over the first three months of 2017 compared to the same period a year ago.

This was despite the number of Stamp Duty liable transactions falling by 5%. Residential purchases generated almost £2bn in Stamp Duty for Q1 of 2017 up 16% on Q1 2016.

However, HM Revenue and Customs warned that liable transactions in Q1 of 2016 were unusually high, and so year-on-year comparisons for this quarter should be made with caution.

Data from HMRC showed that the number of liable transactions valued between £250,000 and £500,000, and above £500,000 were down noticeably on the same period last year – by 10% and 14% respectively.

Only liable purchases priced between the Stamp Duty cut off of £125,000 and £250,000 were largely unchanged on 2016.

 

Unfair burden

Private Finance director Shaun Church said it was entirely unsurprising to see fewer residential property transactions liable for Stamp Duty given the huge spike in transactions.

“However, the statistics make it clear that the upper-end of the market has unfairly borne the brunt of land tax reform,” he said.

“While the number of liable transactions with a value of less than £250,000 is practically unchanged from a year ago, there has been a 14% fall in transactions with a value above £500,000.

“A healthy property market needs movement and fluidity at all levels and across all tenures, but it appears that the changes have unfairly targeted the upper-end of the market – which does little to help the cause of first-time buyers,” he added.

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.

Profiles

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.

Marketwatch

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.

Poll

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.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
montage of top high street bank brands
Bank mortgage lending and approvals fall in March

Banks advanced £13.2bn of mortgage lending in March, the lowest amount this year, while approvals declined for the third consecutive...

Close