Londoners shoulder most of the UK’s £3.6 billion stamp duty burden

Londoners shoulder most of the UK’s £3.6 billion stamp duty burden

0:02 AM, 19th April 2024, About a month ago 5

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Londoners are feeling the squeeze of Stamp Duty Land Tax the most as they fork out 40.7% of the national total, research reveals.

According to a study by Benham and Reeves, over the past year, an estimated £3.657 billion has been paid in stamp duty across England.

And a whopping £1.49 billion of that coming from the capital city alone.

The data, which is based on sold price information from the Land Registry, highlights the significant financial burden shouldered by London homebuyers.

The analysis shows that 17 out of the top 20 areas with the highest stamp duty bills are located within the capital.

‘Stamp duty is an outdated tax grab’

A director of Benham and Reeves, Marc von Grundherr, said: “Stamp duty is an outdated tax grab that acts as nothing more than a thorn in the side of the nation’s homebuyers and one that has remained there due to the greed of a stubborn government intent on taxing our ascent up the property ladder.

“Now more than ever, the calls to abolish stamp duty must be heard.

“In the last year we’ve seen a considerable reduction in buyer market activity as they’ve struggled to overcome the obstacle of higher mortgage rates and it simply isn’t right that they have to also contend with the ever-increasing cost of stamp duty to boot.”

He adds: “What’s more, such a punitive tax also acts as a deterrent to investors and can have a big impact on off-plan sales, particularly when coupled with inflation and higher interest rates.

“Removing this additional cost would go some way in rejuvenating both existing and new-build market activity and helping to drive buyers back into the fold.”

London boroughs dominate the list

Kensington and Chelsea take the top spot, with an estimated £207 million paid in stamp duty over the past year, or a hefty 5.6% of the entire national total.

Westminster (£183.8 million) and Wandsworth (£108.7 million) follow closely behind, solidifying London’s dominance in the stamp duty landscape.

Outside of London, Buckinghamshire emerges as the area with the highest stamp duty bill at just over £76 million.

Bournemouth, Christchurch and Poole (£38 million) and Cornwall (£32.7 million) are the only other non-London entries in the top 20.


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Comments

TheBiggerPicture

13:43 PM, 19th April 2024, About a month ago

Stamp duty, arguably the worst tax.

It's a tax on moving.

It's completely possible to function as a society fine without it.

NZ does not have it, and no-one is asking for it there.

Cider Drinker

20:38 PM, 20th April 2024, About a month ago

It’s an insidious tax.

Elderly people are trapped in their 4 bedroom houses because moving late in life is unaffordable.

GlanACC

8:31 AM, 21st April 2024, About a month ago

Accepting thats its a tax on moving, London will quite rightly shoulder the biggest take of the tax. Higher house price = higher tax, don't like it then don't buy in London.

Cider Drinker

9:42 AM, 21st April 2024, About a month ago

Reply to the comment left by GlanACC at 21/04/2024 - 08:31
I don’t live in London but I disagree.

If there must be SDLT, it should only be charged on the difference between the prices of the houses that you are buying and selling. Downsizing should attract SDLT, in my opinion.

GlanACC

10:14 AM, 21st April 2024, About a month ago

Reply to the comment left by Cider Drinker at 21/04/2024 - 09:42
I think you mean downsizing should NOT attract SDLT. Actually I agree with you that it should only be on the difference BUT the way of calculating the difference could be quite complex and open to fraud. Better no SDLT at all but that won't happen

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