30 Jul

CML: Drop in stamp duty revenue may drive change

CML: Drop in stamp duty revenue may drive change

Falling stamp duty revenue could prompt the government to reform the system, according to the Council of Mortgage Lenders (CML).

Although the revenue figures for the 2007-08 fiscal year are not available until September the organisation predicts that £7 billion will be raised, an increase on the previous year, which it suggests is down to the strong housing market up until mid-2007.

However, for the next fiscal year the CML expects the government to experience a £3 billion shortfall in revenue from residential stamp duty, due to a decline in house purchases and falling prices.

"The 'slab' structure of stamp duty, under which duty is charged at the highest appropriate rate on the whole purchase price, including the parts below lower thresholds, has meant significant 'fiscal drag' in recent years," it said in a statement.

In line with calls from other leading property bodies, including the National Association of Estate Agents, the CML is urging the government to reform the system to make it fairer and persuade more first-time buyers to enter the market.
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