Stamp Duties

Treasury written question – answered on 21st April 2008.

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Photo of Justine Greening Justine Greening Shadow Minister (Treasury), Vice-Chair (Youth), Conservative Party

To ask the Chancellor of the Exchequer

(1) what adjustment he has made to the previous £15 million budget for stamp duty relief for zero-carbon homes as a result of the Budget 2008 announcement that flats and maisonettes will now qualify;

(2) what assumptions he has made of the numbers of additional flats and maisonette properties which will qualify for the stamp duty relief for zero-carbon homes as a result of the Budget 2008 announcement that flats and maisonettes will now qualify;

(3) what total stamp duty relief has been claimed to date in relation to zero-carbon home purchases, broken down by stamp duty band (a) 1 per cent., (b) 3 per cent. and (c) 4 per cent.

Photo of Julia Goldsworthy Julia Goldsworthy Shadow Secretary of State for Communities and Local Government, Department for Communities and Local Government

To ask the Chancellor of the Exchequer

(1) how many new homes have qualified for zero-rate stamp duty for zero-carbon homes since the discount was introduced;

(2) how many of those purchasing a residential property since the zero-rate of stamp duty land tax for zero-carbon homes came into effect have been liable for any stamp duty land tax.

Photo of Eric Pickles Eric Pickles Shadow Secretary of State for Communities and Local Government

To ask the Chancellor of the Exchequer

(1) what estimate he has made of the annual cost to the Exchequer of his proposal to extend stamp duty zero-carbon tax relief to flats in (a) real and (b) cash terms;

(2) what the maximum fee is that an assessor can charge to assess whether a dwelling meets the zero-carbon standard; and whether the fee applies to (a) domestic and (b) commercial property;

(3) what estimate he has made of the number of properties that will take up the proposed stamp duty zero-carbon tax relief for flats in the first full year of the exemption's operation.

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

As stated in the Budget 2007 report, the Exchequer cost of extending stamp duty zero-carbon tax relief to flats is expected to rise to around £15 million in 2011-12. This cost takes into account new flats and maisonettes as well as new houses. The stamp duty land tax relief for new zero-carbon homes only applies to residential property.

Of those transactions for which a stamp duty land tax certificate was issued between 1 October 2007 and 31 March 2008, 10 transactions claimed the stamp duty land tax relief for new zero-carbon homes. All of these transactions fell in the 1 per cent. tax band. No data currently exists for April.

450,368 residential transactions were liable for stamp duty land tax between 1 October 2007 and 31 March 2008. No data currently exists for April.

The tax relief will help kick-start the market for new highly efficient technologies in homes, both for the fabric of the building and in the use of microgeneration, and sets a gold standard for green homes.

We expect the number of qualifying transactions, including flats and maisonettes, to be initially low in the first few years but to rise as more properties eligible to claim the relief go on the market. For example, in December of last year, the Government announced details of 200 new homes to be built to a zero-carbon standard in Hanham Hall, near Bristol. The media release can be found at:

http://www.communities.gov.uk/news/corporate/611694

The Government are committed to conducting an interim review of the relief in 2010 which will examine the effectiveness of the relief in stimulating the innovation necessary to ensure that all new homes are built to a zero-carbon standard from 2016.

The level of fees that an energy assessor can charge for assessing whether a dwelling meets the Treasury's stamp duty land tax zero-carbon standard is purely a commercial decision. However, if the energy assessment is carried out by a Government Department, not in competition with commercial suppliers, then in line with Treasury guidelines on managing public money, the charge cannot exceed the full cost of the service provided without parliamentary approval.

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