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Rise in stamp duty surcharge was considered for Autumn Budget
An increase to the stamp duty land tax surcharge on second homes and buy-to-let properties may have been planned and later scrapped in the Autumn Budget and Spending Review.
The Office for Budget Responsibility’s report which was published after chancellor Rishi Sunak’s speech states that the levy had risen.
The report, which has not been corrected, said: “A three per cent surcharge on additional property purchases was introduced in April 2016. It has been raised to four per cent in this Budget.”
It added: “HMRC has analysed the response to its introduction and found that it was strong.”
However, Sunak did not mention this on Budget day, suggesting it may have been dropped at the last minute.
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A spokesperson for the Treasury said: “No change to stamp duty rates was announced at this Budget.”
Overall, announcements regarding the property sector remained relatively light in the Budget, resulting in some industry figures criticising the government for not making key reforms.
The majority of updates clarified or slightly amended existing policies, such as the confirmation that the developer levy tax to pay for the remediation of unsafe cladding would apply to companies with profits of £25m or more at a rate of four per cent.