‘Nearly half of all stamp duty revenue raised in England and Wales is generated through property sales in London, according to data showing the impact of last year’s reforms.
Research by Knight Frank has shown London accounted for 13% of all property transactions in England and Wales in the first three months of this year, yet contributed 46.9% of total stamp duty revenues. Prior to the introduction of stamp duty reforms in the Autumn Statement, London sales accounted for 43% of total revenues.
At the same time, the data show that homes valued at £1m or more contributed 34% of all stamp duty receipts, compared to 26% a year previously. Under the new sliding system, a top rate of 12% now applies to properties sold for £1.5m or more. The stamp duty increase, combined with tax changes for foreign property owners and fears of a “mansion tax” in the run-up to the general election, have all contributed to subdued demand in the London housing market.’
Source: Financial Times