Recent data has revealed that Stamp Duty receipts for the 2016 financial year on residential property have grown by 17%.
At £3.4 billion, the largest portion of Stamp Duty revenue came from London, which made up 41% if total value. The south-east followed this at £1.8 billion, representing 21% of total value.
In terms of transaction volume, however, 2016’s figures were the lowest since 2013-14, dropping by 8% to £1.09 million.
Details on the stamp duty surcharge introduced last year were also provided in the report, which indicated a rise in total income generated by the tax. Over 2016-17, the 3% rise raised an additional £1.7 billion, representing 39% of the total receipt value.
On average an extra £276,000 was paid by additional property buyers over the year, with £16,000 being spent on the tax.
97% of all the revenue from additional properties came from transactions in England during 2016-17, with Welsh transactions representing 2% and those in Northern Ireland accounting for the final 1%.
On a regional level, the majority of revenue gained from additional properties came from transactions in London. At £1.39 billion, transactions here represented around 43% of all additional property transaction stamp duty receipts.
Highlighting the need to consider reform on the tax was Nick Leeming. The chairman of Jackson-Stops stated: “Although the Treasury will be pleased to see Stamp Duty receipts have generated £8.5bn in revenue on residential transactions, Philip Hammond must view the property market through the eye of the home owner and come up with a solution in the Autumn Budget.
“The Government has been too harsh on buyers in the £1m-plus market, which in fact generates 30% of all Stamp Duty receipts.
“If they were to take steps to reform the impact Stamp Duty has on the top end of the market, even just marginally, they would not only see their revenue dramatically increase but it would also get the market moving again at all levels.”
