An extra £2 billion has been raised in tax for the government following the rise in stamp duty land tax (SDLT) on additional homes.
Data from Blick Rothenburg indicates that the SDLT receipts for second homes and buy-to-let properties have grown by 20% despite the number of property transactions remaining relatively unchanged over the past two years. This is approximately equivalent to an extra £2 billion worth of tax.
Stating that the main driver behind the increase is likely to be SDLT surcharge was Robert Pullen. The director at Blick Rothenburg also questioned whether the tax really was staying in line with its original intention of improving market fairness for those trying to get on to the property ladder.
‘It is becoming clearer that as prices continue to rise, the measure has succeeded only in generating extra tax for HMRC. The government will need to urgently consider whether the additional 3 per cent SDLT policy is helping achieve fairness in the property market, or if it is creating more problems than it is solving.’
Agreeing with this view was Colby Short. The chief executive at GetAgent.co.uk highlighted that rather than boost the number of first-time buyers, ‘they still have the struggle of raising the capital required for mortgage deposits.’
