1.6% of families pay half of all stamp duty (Daily Mail)

CPS report “The Shrinking Case for a Mansion Tax” was the subject of a Daily Mail article, Wednesday 18 February 2015. 

To read the full article, visit the Daily Mail website

“But the Chancellor’s reforms have already increased the tax burden on high value homes by £1.1billion a year and mean the top 1.6 per cent of households – with homes worth more than £1million – now pay 45 per cent of all stamp duty, the Centre for Policy Studies says.

The think-tank claims any further taxation on high-value property owners would be ‘difficult to justify on grounds of fairness’. 

Its study says ‘any justification for a mansion tax has been significantly eroded’ by recent stamp duty increases on high-value properties. 

While the reforms mean the majority of buyers save money, those purchasing homes costing more than £937,500 will pay a higher tax bill.

The maximum stamp duty charge, levied on homes costing more than £1.5million, is now 12 per cent compared to 7 per cent previously.

Separate changes have closed a loophole which allowed people to avoid paying stamp duty on an expensive home by purchasing it through a company, rather than as an individual.

The report said these two changes meant the top 1.6 per cent of households pay almost half of all stamp duty collected by the taxman.

It said Labour’s mansion tax proposal was crude, would take no account of an individual’s ability to pay, would be expensive to administer and would raise insignificant revenues.”

To read the full article, visit the Daily Mail website

Date Added: Wednesday 18th February 2015