Stamp duty boosts treasury coffers
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.