Stamp duty revenues jump to £8bn
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New research estimates that stamp duty revenue in England and Wales has risen by over 20% since 2014, to a record £8 billion. The study, conducted by Halifax suggests that three quarters of all homebuyers are liable to pay stamp duty, including nearly all sales in London and roughly 50% in northern England and Wales. Under the changes introduced in December 2014, stamp duty rates are now applied in bands and no stamp duty is paid on the first £125,000. This means that many buyers are now significantly better off. According to Halifax, a typical homebuyer would pay £2,985 in stamp duty based on the current average house price in England and Wales of £259,708. Although this seems a high figure, it is in actual fact £4,806 less that the £7,791 buyers would have paid under the old flat structure. However, those looking to buy properties above £938,000 have been hit the hardest under the new stamp regime, and that is where the government’s increased revenue will have been generated. While it is still early days, Halifax noted that there are no signs of any changes in behaviour as a result of the changes to stamp duty at the start of December.