Revenues from the most expensive areas of London fall

The tax Department in the UK published official data showing that for the fiscal period 2014/2015 collected a record £7.5 bn of Stamp duty collected from property transactions during this period. It is £1 billion more than for the period 2013/2014, when it was raised to £6,45 billion and a half times more than for the tax season 2012/2013, when the budget received £4.9 billion of Stamp duty.

The main income Stamp duty – more than £3 billion came from the sale of residential property in London, then follow the South-East of England. Together, these two regions had collected more than 66% of all tax revenues from real estate transactions.

Between tax seasons, 2008/2009 and 2014/2015 tax revenues from Stamp duty in London grew by 248%, compared with an increase of 158% in the East of England, and increase of 140% in the South of England. In other English regions, the Ross of revenues ranged from 75% to 120%.

The growth of tax revenues in London reflects the rising prices of property in London compared with the rest of the UK, as well as the fact that the highest rates of Stamp duty starts for properties between £1 million and more raised in London.

Statistics on Stamp tax reflects the contrast between London and other UK regions. For example, Londoners have paid over the past year, 43 times more than people in the North East of England, reflecting not only low activity on the housing market North East of England, but also the high rates paid by the buyers of expensive real estate.

In General, the impact of the new rates of Stamp duty on the housing market the UK real estate remains to be seen. Despite the fact that revenues in 2015, a record high of £10.7 billion – is £700 million less than planned tax office, when he introduced a new scale of Stamp duty in December 2014.

The greatest impact of the new rates of Stamp duty has had on the two areas in London – Kensington and Chelsea and Westminster. Proceeds from these expensive areas of London have fallen this year to 18.9% from 20.1% a year earlier. Slightly increased the number of transactions in the sector cheaper than £1 million, but it has not had a significant impact on revenues, as this sector benefited from exemptions in the tax regime and the amount of Stamp duty received from sales in this sector are very small.

Thus, the growth rate of revenue in the most expensive districts of Westminster and Chelsea and Kensington is slowing and is much lower than in other areas of the UK.

® Alice Morgan G. 29.09.2015

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