30
Jul
CML: Drop in stamp duty revenue may drive change
Falling stamp duty revenue could prompt the government to reform
the system, according to the Council of Mortgage Lenders
(CML).
Although the revenue figures for the 2007-08 fiscal year are not
available until September the organisation predicts that £7
billion will be raised, an increase on the previous year, which it
suggests is down to the strong housing market up until
mid-2007.
However, for the next fiscal year the CML expects the government to
experience a £3 billion shortfall in revenue from residential
stamp duty, due to a decline in house purchases and falling
prices.
"The 'slab' structure of stamp duty, under which duty is charged at
the highest appropriate rate on the whole purchase price, including
the parts below lower thresholds, has meant significant 'fiscal
drag' in recent years," it said in a statement.
In line with calls from other leading property bodies, including
the National Association of Estate Agents, the CML is urging the
government to reform the system to make it fairer and persuade more
first-time buyers to enter the market.
