Stamp Duty Holiday boosts UK property market and tax offices
The government released The data confirming that the UK property market has been significantly boosted by the land tax holiday on stamp duty (SDLT).
Results for the second quarter of 2021 show that total SDLT transactions have jumped 165% from the same period last year and 9% from the first quarter.
The government introduced a stamp duty holiday in July 2020, reducing taxes on properties under £ 500,000 until June 30, 2021.
Despite the tax holiday, revenue from tax revenue has jumped.
The tax coffers benefited from the stamp duty paid to HMRC up 92% year on year in the second quarter.
Tax revenue totaled £ 2.85 billion despite the proportion of qualifying transactions dropping from 64% to 37%.
The government has raised an additional £ 19million from a 2% surcharge on non-resident buyers of properties introduced in April 2021, indicating that UK property remains attractive to overseas buyers.
Zena Hanks, partner of the Saffery Champness private wealth management team, said the results are “proof of the dramatic impact SDLT vacations have had in boosting the real estate market.”
Hanks said: “The fact that the reduction in the tax burden on real estate transactions has spurred such a wave of activity in the market may convince the Chancellor to employ this technique to pursue other policy objectives – for example, reducing the SDLT burden on the elderly seeking downsizing.
Between July 1 and September 30, the stamp duty holiday will continue for properties under £ 250,000, with the zero tax threshold falling to £ 125,000 from October 1.
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