STAMP DUTY REVENUE RISES 35 %
The HMRC’s Tax and National Insurance statistics show the government collected £9.3 billion in stamp duty revenues during the 2013-14 tax year, a 35% increase on the previous year’s £6.9 billion.
The report states the £2.4 billion rise is likely down to:
- The introduction of a higher rate for residential properties over £2 million
- The increased number of property transactions
- Higher property prices
For each month stamp duty receipts were higher than the corresponding month in the previous four years. This trend has also continued into the 2014-15 tax year with receipts from April to September 25.2% higher than the same period last year.
The total takes in to account the £97 million in receipts from the Annual Tax on Enveloped Dwellings (ATED), which was introduced on 1st April 2013 and effects companies that own high value residential property.
A BLOW FOR BUYERS
It is clear stamp duty payment thresholds have not kept up with the rising cost of property. The Office for National Statistics reported an annual 18.8% rise in London, and a 12.1% increase across the UK this year up to September.
Anita Monteith, tax faculty technical manager at the Institute of Chartered Accountants in England and Wales (ICAEW) said that in the 1990’s many people “would have been exempt from stamp duty”, whereas more people are now finding they are being asked to pay higher amounts.
This includes a 4% rate on houses valued above £500,000, resulting in an increasing number of homeowners reassessing their need to move.
SAVE ON YOUR STAMP DUTY
Stamp duty land tax is an additional hurdle for home buyers to overcome. If you are concerned about the rising cost of stamp duty land tax you are being asked to pay on high value property, call Fiducia today on 01625 599 200 to discuss your case in more detail.