The Telegraph declared last week that stamp duty reforms announced in December 2014 are damaging the property marketing and cutting tax intakes.
The article was published just one week before the new Chancellor of the Exchequer Phillip Hammond delivers his Autumn Statement, which is expected to discuss stamp duty.
According to new research obtained by The Telegraph, the Exchequer ‘received £370 million less in stamp duty than the £700 million it expected following major changes made by George Osborne.’
It has also, according to new analysis, had a knock on effect on other parts of the economy because the number of people selling their homes has fallen. Potentially £1 billion has been lost due to a deficit of spending on property related transactions such as removals or renovations.
A number of MP’s, housebuilders and other organisations have now called for changes to be made.
Conservative MP Jacob Rees-Mogg said: “Taxation ought to be about raising the revenue governments need – not the politics of envy. Punitive stamp duty rates seem, unsurprisingly, to have failed.”
This was followed by Rob Perrins, chief executive of Berkeley Homes who believes that the current stamp duty system “is stopping social mobility and will result in lower GDP and fewer homes getting built.”
Responding to the criticism a spokesman from the Treasury said: “The overwhelming majority of those who pay stamp duty – 98 per cent – are saving money thanks to our reform, which has done away with the unfair old system.
“Over 780,000 homebuyers saved an estimated £657 million on stamp duty in the year since tax was reformed.”
The Autumn Statement will be announced on Wednesday 23 November.
To read the full article in The Telegraph please click here