SDLT surcharge on second homes nets additional £1.19bn
The Times has reported (behind a paywall) that the additional 3% SDLT surcharge on residential properties brought by someone who already owns a property has led to an additional tax take of £1.19bn for the Treasury. This is nearly double the amount estimated by the Office for Budget Responsibility.
In the Times' view this makes it unlikely that the surcharge will be scrapped. It appears that cash buyers of buy to let properties are still in the market, and that the tax increase and other measures have pushed out those who need to buy additional properties with debt.
There is a concerted effort from the Property industry to reform SDLT, including a call to exempt Build to Rent developers from the higher rates. It will be interesting to see if that particular proposal will succeed when SDLT is becoming more and more important to the public purse.
The Quarterly Stamp Duty Statistics bulletin provides statistics on residential and non-residential SDLT transactions valued at £40,000 or above. The bulletin is updated quarterly.”
