Londoners Paying Four Times More Stamp Duty Than The Rest Of The Country

London house buyers are paying at least four times more stamp duty than those in the rest of England and Wales, an analysis shows.

The data from London Central Portfolio reveals basic rate stamp duty in England and Wales stands at £7,161 on average, compared with a huge £27,232 in London.

Moreover, the most expensive 10% of properties contributed around 60% of all stamp duty receipts in 2017.

Greater London was the biggest contributor to stamp duty at about 39%.

Two boroughs alone, the Royal Borough of Kensington and Chelsea and the City of Westminster, contributed in excess of £0.6 billion.

As a whole, residential stamp duty receipts increased by £1.3 billion in 2017 compared with 2016, reaching a record £9.5 billion.

However, this was largely a result of the new 3% additional rate stamp duty on buy-to-let property and second homes.

This tax alone generated one fifth of all receipts and excluding it, the stamp duty take falls back to 2014 levels.

Naomi Heaton, chief executive of London Central Portfolio, warned that reliance on the stamp duty take from second properties, which pay an additional rate of 3%, to prop up the market is a dangerous gamble.


“Representing almost half of all tax take, any new deterrent could start eating away at the public purse,” Heaton added. “Unless the government can start to stimulate property transactions again, which according to Land Registry have fallen 29% in England and Wales over the last decade, the outlook for future stamp duty revenues looks fairly grim.”


 

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