Stamp duty holiday cost government £ 2.8bn, latest figures show

Realtors who are grateful for Chancellor Rishi Sunak’s stamp duty holiday to keep the market booming after Covid may pay it later.

Government figures just show that the measure, which was warmly applauded by the industry when it was launched and then extended last year, has helped reduce the government’s overall SDLT tax intake by $ 2.82 billion. pounds sterling, down 19% over the past 12 months.

This included a 25% drop in residential land and SDLT during the holidays, from £ 11.6bn in 2019/20 to £ 8.67bn in 2020/21.

But the biggest drop is only in residential SDLT revenue, which fell 29% over the same period.

As readers will recall, in his summer economic update, the Chancellor announced a temporary increase in the zero rate band for SDLT to £ 500,000 from July 8, 2020 to March 31, 2021 for residential properties.

Good thing?

The effects of this situation are still being felt in the sales market, although not everyone thinks it has necessarily been a good thing.

phil natusch“It created a boom and pushed prices even higher – probably not what was expected,” commented Phil Natusch, managing director of the transfer platform. millions (Photo).

“The reasoning behind The Stamp Duty Holiday seems clear; there were concerns about an economic collapse induced by a pandemic; adding stimulus to the real estate market sought to mitigate this.

“With hindsight, it was unnecessary, and even harmful; it created a boom and drove prices even higher – probably not what was expected. It’s too early to judge the longer term impacts on the North versus the South, mainly hopefully there won’t be a hangover after the party.

Read more: Is there a better alternative to stamp duty?

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