Additional properties’ Stamp Duty hits £2 billion
28 July 2017
Commenting on today’s HM Revenue and Customs’ quarterly Stamp Duty Land Tax (SDLT) statistics, Jonathan Evans, director in real estate tax at Deloitte, said:
“Today’s figures highlight the stamp duty land tax revenue generated by ‘additional properties’ such as second homes and buy-to-let properties. Since the introduction of the 3% charge on the purchase of additional residential property in the UK in April 2016, the government has collected £2 billion.
“To put into context, during 2016-17 alone the total tax revenue on residential property was £8.6 billion with £1.5 billion being generated from the additional 3% property charge.
“The additional charge makes a dramatic difference which explains why it collects so much additional revenue. Take the UK’s average house value of £215,847, the stamp duty land tax charge to a single dwelling buyer is £2,150 but rises to £9,126 for an additional property. In London the average home, now valued at £471,742, would normally suffer £13,587 of tax but this increases to £27,739 for an additional property.”
Average house price Source: UK House Price Index (HPI) for March 2017
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