Taxation: Housing

Grant Shapps
To ask the Chancellor of the Exchequer what estimate his Department has made of housing sector receipts as a percentage of (a) total taxation receipts and (b) gross domestic product in each of the next three years.

Ian Pearson
Box C3 in Budget 2009 provides details of housing and financial sector receipts. Taxes such as capital gains tax and inheritance tax will reflect both housing and financial sector assets. Stamp duty will reflect shares, housing and commercial property.

Table 2.9 in Budget 2009: the economy and public finances—supplementary material provides projections for stamp duty, inheritance tax, capital gains tax up to 2013-14 and total receipts. This is available at:

http://www.hm-treasury.gov.uk/d/Budget2009/bud09_econfinances_968.pdf

Table C1 in the Budget provides projections of money GDP up to 2013-14. This is available at:

http://www.hm-treasury.gov.uk/d/Budget2009/bud09_chapterc_463.pdf

Grant Shapps
To ask the Chancellor of the Exchequer what assumptions he made on (a) house prices and (b) numbers of new build (i) starts and (ii) completions in reaching the estimates on housing sector receipts in each of the next three years set out in the Budget 2009 Red Book.

Angela Eagle
Receipts related to the housing market are determined primarily by the levels of property transactions and prices. The assumptions for both are set out in paragraphs B77 and C52 in the Budget document. For the purposes of the fiscal forecasts house prices are assured to move in line with the average of independent forecasts.