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Stamp Duty

Volume 979: debated on Tuesday 26 February 1980

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for Woolwich West (Mr. Bottomley), Official Report, 10 May 1977, c. 456, showing, for the latest available year, and including estimates for 1979–80, the proportion of total income tax raised from the following income groups in each year since 1970–71 ( a) the top 1 per cent., ( b) the top 10 per cent., ( c) the top 40 per cent., ( d) the bottom 30 per cent. and ( e) the bottom 10 per cent.

The proportion of income tax and surtax raised from the groups of income recipients is as follows:publish in the

Official Report an estimate of the total revenue from stamp duty paid as a result of share transactions in the financial year 1979–80.

It is estimated that the yield of stamp duty from transactions in stocks and shares in 1979–80 will be about £200 million.

asked the Chancellor of the Exchequer what the loss of revenue would be to the Government as a result of raising the threshold at which stamp duty becomes payable for house purchases to £25,000 and £30,000, respectively.

Assuming that the present rates of duty and £5,000 bands were retained, the estimated full-year cost of raising the thresholds to the suggested levels for conveyances of all land and buildings—with appropriate adjustments for leases—in 1979–80 would be as follows:

ThresholdCost(£ million)
£25,000120
£30,000150

asked the Chancellor of the Exchequer by how much the present £15,000 threshold for payment of stamp duty on house purchase would have to be increased to take account of movement in (a) the general index of retail prices and (b) average house prices since it came into operation on 1 May 1974.

[pursuant to his reply, 25 February 1980]: On the basis of the most recent figures available the present £15,000 threshold would need to be increased by approximately the following amounts:

  • a. £19,000.
  • b. £15,000.*
  • * Derived from the increase in the average price of dwellings between the second quarter of 1974 and the last quarter of 1979, obtained from the figures published by the Department of Environment, which we based on the prices of dwellings known to building societies on completion of a mortgage.