LONDON (Feb 29): The UK Treasury has netted 15% more tax on home purchases worth more than £1 million (US$1.4 million) (RM5.85 million) since reforming the levy on property transactions, analysis by the tax authorities showed.
Chancellor of the Exchequer George Osborne introduced the change in December 2014 and since then more than 780,000 homebuyers saved about £657 million on so-called stamp duty, the Treasury said in an emailed statement on Sunday.
The measure, which introduced marginal rates that only apply to the portion of the price above a series of thresholds, was aimed at reducing costs for average families and increasing the levy on more expensive homes. The previous system levied a single rate on the entire purchase price.
Ninety-eight per cent of homebuyers “are saving money thanks to our reform, which has done away with the unfair old system that meant increases being imposed on those paying just a pound over the threshold,” Osborne said in the statement. “These figures show that the benefits are being felt across the country. It’s a fair, workable, lasting reform to the taxation of housing.”
The measures haven’t slowed home sales at the top end of the market, as analysis from Her Majesty’s Revenue and Customs showed transactions remained constant.