Pressure Building for Stamp Duty Fix

UNITED KINGDOM / AGILITYPR.NEWS / May 22, 2020 / Stamp duty receipts show the impact of the frozen housing market, say leading tax and advisory firm , Blick Rothenberg

Sean Randall, a stamp duty expert and a partner at the firm said: “The Governments monthly tax revenue statistics released today [Friday 22 May 2020] show the extent of the fall in property transactions during the full month of April and the possible longer-term impact to the Exchequer. In April, there were just over 38,000 completions over £40,000 less than half the number in the same month last year and in March this year.”

He added: “ Already, taking into account just one month of lockdown, the stamp duty revenue for the 12-month period ending last month has fallen by 6.32% compared to the same period last year. Our experience is that sector activity seems to be increasing, albeit from a low base, but we expect the drop in revenue for the 12-month period ending next month to be even greater. The latest figures probably capture sales pursuant to contracts exchanged pre-lockdown. If that is right, pressure will surely build on the Government for some type of stamp duty fix.”

Heather Powell, Head of Property at Blick Rothenberg said: “Although the housing market is thawing, the process (so far) is slow. There is a lack of interest from buyers due to a lack of confidence and no “fire sales” by distressed owners due to Government and Bank of England fiscal intervention.” She continued: “Stamp duty is a handbrake on the market at the best of times. Releasing it partly by introducing, for example, a temporary relief for downsizers could increase tax receipts, support the house building sector, address the UK housing shortage and boost the retail economy such as DIY outlets and furniture stores.”