During the year 2013/2014 the Government raised a total of £6.5bn from residential Stamp Duty Land Tax. This figure is 31% higher year on year, according to HMRC. The only year in which more was raised was 2007/2008. According to the Financial Times, the rise in SDLT receipts is partly as a result of there having been more sales and purchases, but also because of rising house prices. HMRC data shows that in 2013/2014 houses sold for £1m plus generated £1.9bn in SDLT of which £1.1.bn was paid on purchases over £2m. According to Zoopla, 79% of houses with a market value of more than £2m are in London.
SDLT (still often incorrectly referred as Stamp Duty) is a tax on the percentage of the purchase price, varying from 1% to 7%. The highest rate is for properties sold for more than £2m whereas no tax is due if a house sells for £125,000 or less. If you have any queries about SDLT, please contact Julie Rowan on firstname.lastname@example.org or 01208 72328.