Following ongoing property market reforms, HM Revenue & Customs (HMRC) has reported a 2.5 per cent decrease in Stamp Duty Land Tax (SDLT) revenues – which fell to £7.3billion in the 2015/16 financial year, according to reports.
Uncertainties surrounding the European Union (EU) Referendum and a slowdown in buy-to-let activity following a three per cent SDLT surcharge imposed upon second home purchases in April are thought to have had an adverse effect on property transactions.
According to HMRC’s data, half of all SDLT revenues for the 2015/16 financial year were generated from properties purchased for £1million or more.
Furthermore, up to a quarter of all SDLT revenues came from transactions valued at £5m or more, HMRC’s data suggests.
46 per cent of all SDLT receipts were generated by transactions in the City of London, where property values have risen sharply in recent years – with a single borough (Kensington and Chelsea) contributing to 7 per cent of all SDLT takings.
The news comes after former Chancellor George Osborne increased tax on such higher value properties in December 2014.
However, the number of both residential and non-residential property transactions where the value of property was £250,000 or less has fallen from 81 per cent in 2006/7 to sit at just 65 per cent in 2015/16.