The report says that there has been a £1 billion increase in the amount of stamp duty collected in 2016 -2017, with the total figure raising to £11.7 billion and likely to raise to £16.8 billion by 2020.  This is more than capital gains tax and inheritance tax combined.

Stamp duty payable

The 2014 increases mean that the following is now payable:

 

Value	% stamp duty payable
£0 – £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1.5 million	10%
£1.5 million plus	12%

Those buying second homes or property to let will pay 3% above each of these rates.

The increase has been blamed for the slowdown in the property market, with suggestions that 8/10 homes are now subject to stamp duty, whereas it was 5/10 five years ago.  Estate agents, Savilles, says that 58% of all stamp duty is paid by those buying homes at more than £500,000 and those buying second homes.  The Times report suggests that houses at the top of the market are not moving as people cannot pay the duty and that this has had an effect on the rest of the market.

Channel 4’s Four Rooms presenter, Celia Sawyer, has called for a temporary cut in stamp duty on houses valued at over £1.5 million, saying it will help to get the market moving again.

You can find out more about stamp duty on our web pages.