Treasury take from Stamp Duty Land Tax could plummet, warns watchdog

The Office for Budget Responsibility has warned that Treasury receipts from Stamp Duty Land Tax could be hit hard – possibly by around £10bn.

The OBR has identified Stamp Duty as one of five key areas of concern.

While it expects revenues from Stamp Duty to rise this year, to £13.1bn, it has warned that a 10% fall in the price of prime properties could hit Treasury receipts by 6.3%, while another financial crisis would hit Treasury earnings from SDLT the hardest of all revenue the Government earns from taxes.

The OBR said that 9,250 residential transactions in Westminster, Kensington & Chelsea accounted for only 0.8% of all sales in 2015-2016, but accounted for £1bn in SDLT – 14% of total receipts.

If prime property prices drop 10%, that revenue would fall over 6%, while a new financial crisis poses a huge risk: the OBR says it would mean total receipts would drop to around £3bn from 2018-2019 onwards.

x

Email the story to a friend

One Comment

  1. AgentV

    Stamp duty proceeds have nearly doubled since 2007 whilst completed sale numbers are down substantially. Be interesting to know what the average is per domestic transaction. Could it really be over £10,000?

    Put’s an average agent’s fee in perspective!

    Report
X

You must be logged in to report this comment!

Leave a Reply