Published On: Wed, Aug 21st, 2019

Stamp Duty Land Tax MAPPED: UK locations with biggest SDLT spend | Personal Finance | Finance

Stamp Duty Land Tax must be paid to HM Revenue and Customs (HMRC) by the buyer of property or land over a certain amount, in England and Northern Ireland. Stamp Duty has been replaced by Land Transaction Tax (LTT) for properties bought in Wales, with this coming into effect from April 1, 2018. SDLT applies above a certain threshold – currently £125,000 – on increasing portions of a property price. That said, those who are purchasing their first home for £500,000 or less may be able to get a discount or relief on SDLT.

Independent lettings and sales agent, Benham and Reeves, has looked at the amount of stamp duty being paid in different locations across the UK.

The data, from 2018, shows that the total of 125,000 residential property transactions in London last year accounted for 11.3 per cent of the overall total of transactions.

Last year, 125,000 residential property transactions took place in London, with the total in the UK amounting to 1,106,000, with the estimated property value standing at £73,100 million.

In the capital, Stamp Duty receipts totalled £3,635 million in 2018, the figures show – which works out at 39.2 per cent of all receipts in the UK that year.

Meanwhile, in the South East, with 178,000 transactions (16.1 per cent) took place in the same year, a greater amount to London.

The estimated property value was £64,095 million.

The Stamp Duty recipients in this location amounted to £1,995 million (21.5 per cent of all receipts).

Nine per cent of transactions in the UK took place in Yorkshire and The Humber last year, with this figure amounting to 100,000 property transactions.

In this region of the UK, the total estimated property value came in at £18,465 million.

The stamp duty paid on these transactions amounted to £310 million – 3.3 per cent of all receipts that year.

Commenting on the research, Finance Director of Benham and Reeves, Vidhur Mehra, said: “Stamp duty is a tax penalty disproportionately aimed at London.

“Despite representing approximately just 1.3 per cent of England’s landmass, the capital is responsible for one-third of all property taxes by way of stamp duty.

“This is not just because London is home to the highest property prices in the nation, but also because at higher values the levy is now designed to penalise that sector harder in relative terms.

“Stamp duty is not only an outdated, archaic practice but a tax on aspiration, choking the upwardly mobile who happen to live where many of the best jobs and transport infrastructure are provided.”

Last week, Chancellor of the Exchequer Sajid Javid said that he would not support the proposal of shifting the payment of Stamp Duty from the buyer to the seller.

Writing on Twitter, he penned: “More speculation about stamp duty this morning. To be clear, I never said to @thetimes I was planning to put it on sellers, and I wouldn’t support that.

“I know from @mhclg that we need bold measures on housing – but this isn’t one of them.”

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