Stamp Duty

Treasury written question – answered on 29th June 2006.

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Photo of Vincent Cable Vincent Cable Shadow Chancellor of the Exchequer, Liberal Democrat Spokesperson (Treasury)

To ask the Chancellor of the Exchequer

(1) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 1 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 5 per cent. on sales of £500,000 and above; and if he will make a statement;

(2) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 1 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 6 per cent. on sales of £500,000 and above;

(3) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £150,000 or less, (b) 2 per cent. on sales between £150,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) (i) 5 and (ii) 6 per cent. on sales of £500,000 and above;

(4) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 2 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 5 per cent. on sales of £500,000 and above;

(5) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £150,000 or less, (b) 1 per cent. on sales between £150,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) (i) 5 and (ii) 6 per cent. on sales of £500,000 and above.

Photo of Edward Balls Edward Balls The Economic Secretary to the Treasury

The estimated revenue cost, in 2007-08, of restructuring stamp duty on residential property sales according to the seven marginal rate schemes (where each rate only applies to consideration above the threshold for each range) described in the question is given in the following tables:

Percentage rate Tax regime 1 thresholds
0 £0-124,999
1 £125,000-249,999
5 £250,000-499,999
5 £500,001 and above
Revenue cost (£ billion) 2.4
Percentage rate Tax regime 2 thresholds
0 £0-124,999
1 £125,000-249,999
5 £250,000-499,999
6 £500,001 and above
Revenue cost (£ billion) 2.2
Percentage rate Tax regime 3 thresholds
0 £0-149,999
2 £150,000-249,999
5 £250,000-499,999
5 £500,001 and above
Revenue cost (£ billion) 2.1
Percentage rate Tax regime 4 thresholds
0 £0-149,999
2 £150,000-249,999
5 £250,000-499,999
6 £500,001 and above
Revenue cost (£ billion) 1.8
Percentage rate Tax regime 5 thresholds
0 £0-124,999
2 £125,000-249,999
5 £250,000-499,999
5 £500,001 and above
Revenue cost (£ billion) 1.6
Percentage rate Tax regime 6 thresholds
0 £0-149,999
1 £150,000-249,999
5 £250,000-499,999
5 £500,001 and above
Revenue cost (£ billion) 2.7
Percentage rate Tax regime7thresholds
0 £0-149,999
1 £150,000-249,999
5 £250,000-499,999
6 £500,001 and above
Revenue cost (£ billion) 2.4

These figures do not include any allowance for behavioural changes.

Does this answer the above question?

Yes1 person thinks so

No1 person thinks not

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