View more on these topics

Government hikes SDLT profit forecasts by 81% to £7bn

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 that 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

Toni-Smith-700.jpg

Chancellor called on to cut stamp duty for FTBs

Chancellor Phillip Hammond has been called on to cut stamp duty on housing transactions for first-time buyers in the Autumn Statement. First Complete sales operation director Toni Smith says the government should help FTBs to get on the property ladder by increasing the threshold or exempting them from paying stamp duty on house purchases, up […]

Real-Estate-Agent-House-For-Sale-London-700.jpg
2

Yorkshire urges Govt to make sellers pay stamp duty

Yorkshire Building Society is urging the Government to reform stamp duty land tax and make it paid by sellers, not buyers. The lender says this would help affordability for first-time buyers and save those in England, Wales and Ireland an average £3,791, with Londoners saving £13,171. Yorkshire will send a formal submission to the Government […]

Savings-House-Property-Mortgage-Ladder-700.png
1

Coventry ends family mortgage over stamp duty pressure

Coventry Building Society has closed its Step Up family mortgage to new business due to parents and guardians being hit by stamp duty hikes aimed at landlords. The Step Up mortgage was designed to bolster first-time buyers’ income with that of their parents or grandparents as part of Coventry’s income assessment. The Step Up loan […]

Pensions - thumbnail

Changes to capped drawdown tables

The tables used for capped drawdown maximum income calculations have been updated. We look at the reasons for the change and what the impact could be. Changes to capped drawdown tables Capped income drawdown involves taking a pension directly from a fund instead of buying an annuity. However, there’s a limit on the maximum amount […]

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up