Stamp Duty System joined with Additional Rate Stamp Duty (ARSD) have drastically affected the London Property Market, HMRC statistics have revealed.
The analysis has shown that Residential Stamp Duty receipts have increased 17% in England and Wales due to the introduction of the 3%. However, London has only increased by 1%, leaving Prime Central London (PCL) falling by 10.3%, compared with last year.
Naomi Heaton, CEO of London Central Portfolio, said: “The new Stamp Duty regime has clearly had a significant impact on London. With the budget approaching, the Government needs to carefully consider the fiscal damage of any future residential tax increases.”
Transactions under £250,000 were the most affected by going down by 25%; on the contrary, over £1m only decreased by 15%.
As a result, PCL’s general contribution to Stamp Duty tax is down by 23.5%. Transactions have fallen 8% in England and Wales; and 17% in London.