View more on these topics

Govt predicts £7bn tax take from buy-to-let stamp duty

HMRC-Tax-Form-700x450.jpg

The Government has hiked its profit forecasts for the Stamp Duty Land Tax surcharge by 81 per cent to £7bn, despite admitting being unprepared for the number of deals timed to dodge the extra tax.

Documents published as part of the Autumn Statement say the 3 per cent surcharge on buy-to-let and additional properties was expected to raise £3.8bn from 2016/17 to 2020/2021.

The documents say: “The measure came into effect on 1 April 2016, providing a four-month window from announcement for buyers to bring  forward transactions and avoid the surcharge.

“We did consider this behaviour when scrutinising the original costing but it seems likely we underestimated its size.”

Despite this, the Treasury has still collected more tax than expected and so has increased its expected surcharge tax take by 81 per cent to £6.9bn.

However, the Treasury says its original prediction was uncertain due to “low quality data and the potential for a large behavioural effect”.

It adds its updated total bill predictions are still uncertain as taxpayers can get a refund within three years of selling their main residence and this might skew the figures.

The surcharge was announced in November 2015.

Recommended

2

Hammond delivers first and last Autumn Statement

Chancellor Philip Hammond has delivered his last Autumn Statement as he shakes up the timetable for the Government’s economic and financial statements. Hammond says: “No other major economy makes hundreds of tax changes twice a year and neither should we.” He says the spring Budget in March will be the final one, and then the […]

1

Opinion poll

The report (Money Marketing, October 25) that Marlborough Stirling&#39s research has found that 53 per cent of people prefer not to meet their financial adviser in person flies in the face of general perceptions. It also contradicts other (perhaps more disinterested) research studies as well. Typically, you would expect to find that some 70 per […]

2

Chancellor unveils new savings and investment bond

Chancellor Philip Hammond plans to launch a new savings bond through National Savings & Investments to help savers in a low interest rate environment. Announced in today’s Autumn Statement, the Government expects the savings and investment bond to have an interest rate of around 2.2 per cent gross and a term of three years. Further […]

Spring has sprung

Well, it’s been lovely to see a little bit of sunshine, even if it was only a brief appearance. I live in Scotland so, believe me, it was very brief.  Of course, with even the tiniest hint of spring, thoughts turn to the inevitable clearout that must take place.  And that got me to thinking […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. […] landlords anyway, at least. The government is set to rake in close to £7 billion over the next five years thanks to changes in legislation, carrying on from the stamp duty rises […]

Leave a comment