High-end property sales fuelling Britain’s economy
Stamp Duty Land Tax receipts 31% higher, with over £9bn raised
High-end property sales are fuelling the Government’s tax take, say London chartered accountants Blick Rothenberg LLP, after February’s tax statistics were released.
The figures published by HMRC suggest an increase in the sale of homes over £1m and £2m has generated higher Stamp Duty Land Tax (SDLT) receipts for the Government in the last 12 months.
Nimesh Shah, senior manager at Blick Rothenberg, said: “SDLT receipts are 31% higher in the 12 months to February 2014 than the previous 12 months, with over £9bn raised. However, and interestingly, the number of residential property transactions during the same period is only 19% higher.
Whilst there were more residential property transactions during the period (185,000 more in the 12 months to February 2014), the differential between the increase in the SDLT take and number of property transactions can be put down to more activity at the higher property value end.”
Nimesh added: “The SDLT rates applying to residential property transactions over £1m and £2m are 5% and 7% respectively. Therefore, whilst these latest statistics point towards an extremely resurgent property market, it seems that activity at the higher property value end is fuelling the increased tax take.”