HMRC rake in £1.19 billion in Stamp Duty Surcharge

by Property 118

14:21 PM, 31st January 2017
About 2 years ago

HMRC rake in £1.19 billion in Stamp Duty Surcharge

Make Text Bigger
HMRC rake in £1.19 billion in Stamp Duty Surcharge

In the last three months of 2016 HMRC earned £519 million extra from the 3% surcharge payable on Stamp Duty for second homes. This was from the purchase of 62,800 second homes in Q4 up from 56,200 in Q3 and 30,400 in Q2 2016 with the total revenue take amounting to £1.19 billion.donald

In an interview with Mortgage Strategy talking about the increase in second property purchases Nick Leeming, Chairman of Jackson-Stops and Staff estate agents, said “This increase is understandable as many buy-to-let investors would likely have rushed to make purchases before 1 April, but the number of liable second home transactions is up again in Q4 to 62,800.

“The data suggests that Buy to Let investors are not being deterred by the new tax which is supposed to be dampening demand from this group to the benefit of first-time buyers.

“We will see the true impact of this policy in time, but my fear is that additional costs will be passed on to tenants. The better solution is a real concerted drive to build more homes, rather than targeting Buy to Let investors. I hope the upcoming Housing White Paper contains a real blueprint for change in this regard.”

There is no doubt initially the extra cost placed upon second property purchases has and will dampen demand. What will be interesting is to see where the figures settle long term and how Price Elastic Buy to Let and holiday home purchases are.



Comments

DC

18:52 PM, 1st February 2017
About 2 years ago

I wonder how much of that £1.19 billion is actually owed back to purchasers that bought a second main home before the sale of their first main home.

We completed the sale of our first main home on 18th November and as well as still not being refunded by HMRC, because it was one of the pre-online requests for reimbursement they cannot even confirm whether they have received our paper application!

They rushed the legislation in without having all the workings to deal with it efficiently in place first.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Company let termination, arrears and 3 week deposit not protected?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More