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Stamp Duty

Volume 622: debated on Monday 12 February 2001

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asked Her Majesty's Government:Why the rates of stamp duty on the purchase of residential and commercial property are identical; and [HL519]Whether the same economic and fiscal arguments apply to changes in the rate of stamp duty on residential property, particularly houses costing over £500,000, as on commercial property; and [HL520]What practical difficulties of duty assessment or collection would follow a decision to levy stamp duty at different rates on residential and commercial property. [HL522]

The stamp duty charge on transfers of land and buildings does not depend on the use made of that property. This has always been the case. The Government examine all the economic and fiscal arguments that apply to residential and commercial property whenever they consider the appropriate rates for stamp duty on property. The administrative implications of introducing different rates would depend on the definitions of residential and commercial property and how the charge would apply to mixed-use properties.

asked Her Majesty's Government:What is their estimate of the cumulative net cost, to owner-occupiers of commercial properties worth more than £500,000, of the increase in stamp duty from 1 per cent to 4 per cent since the 1997 general election. [HL521]

asked Her Majesty's Government:What were the revenue receipts from stamp duty on (a) residential and (b) commercial property transactions in the financial years 1996–97, 1997–98, 1998–99 and 1999–2000. [HL523]

The stamp duty revenue receipts for land and property for the requested years are given in table 15.1 of Inland Revenue Statistics 2000. The estimated component of the receipts attributable to residential transactions is given in table 15.2. The estimated stamp duty receipts component for commercial transactions is the difference between these two amounts.