Stamp duty boosts trea­sury cof­fers

Yorkshire Post - Property - - PROPERTY -

THE pick-up in hous­ing mar­ket ac­tiv­ity will boost gov­ern­ment rev­enue from res­i­den­tial stamp duty, which is now set to over­shoot the Of­fice for Bud­get Re­spon­si­bil­ity’s orig­i­nal es­ti­mate of al­most £6bn for the cur­rent year, ac­cord­ing to the Coun­cil of Mort­gage Lenders.

In the ab­sence of stamp duty re­form, rev­enue from the tax is set to grow by 50 per cent in the next five years.

The CML say that stamp duty is a badly de­signed tax that causes mar­ket dis­tor­tions and con­flicts with mea­sures like Help to Buy, which seeks to help bor­row­ers who can af­ford reg­u­lar mort­gage pay­ments but strug­gle with the up-front trans­ac­tion costs. Nearly half of first-time buy­ers in Lon­don pay higher rate stamp duty.

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