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The fiscal effect of raising the Stamp Duty Land Tax threshold is likely to be a reduction
in SDLT receipts as fewer property transactions will be charged SDLT. A HMRC publication
for Budget 2014 <em>(‘Direct Effects of Illustrative Tax Changes’, </em>19 March 2014)
found that an increase in the £125,000 threshold by £5,000 would cost £35 million
in its first year and £40 million subsequently.<p> </p><p> </p><p> </p><p>Published
research was undertaken by HMRC examining the impact of a first-time buyer’s relief
that was in place between 2010 and 2012 (‘<em>Evaluating the Impact of Stamp Duty
Land Tax First Time Buyers Relief</em>’, November 2011). It found that there was a
substantial deadweight effect as many of the property transactions would have taken
place anyway. The estimated increase in the number of transactions as a result of
the introduction of the relief was between 0-1%.</p><p> </p><p><strong> </strong></p><p>
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