Both the Chancellor and the Government must be concerned about the massive harm that has been done in the decrease of tax revenues, following many years of excessive Stamp Duty Land Tax income (SDLT).
It is reported that revenue from SDLT is down by a staggering £1billion in the past year.
Results show that in the financial year 2017/2018 the Government amassed just under £13billion from SDLT – and in the last 12 months the figures show a reduction of 8% to just under £12billion.
£8.7billion was reported to have been generated from tax revenue in 2018, down £1billion decrease on 2017.
Not only should the Government be seriously concerned about the substantial reduction in income, but all those ‘pipeline’ businesses in the residential property market sector have been struggling to cope with the downturn in overall business transactions.
SDLT has become a huge proportion of the overall cost involved when planning on selling and buying. More than ever people are choosing to extend or refurbish their homes rather than upsizing. People downsizing have also to be tolerant and sometimes have to wait months before a suitable buyer comes along.
Nigel Sellers a Director at property buyers Premier Property Search is anxious that the Government should be re-evaluating its tax policy given the short fall in revenue combined with rejuvenating a lack lustre property market and seeking to promote positive growth going forward.