In 2010, there were 6610 property transactions conducted in Britain at a value over £1million with an average sale price of £1.71million, resulting in an average stamp duty payable of £68,449 and a total take by the Government on £1million+ properties of £452million. As of today the average figure for £1million+ transactions will rise to £85,561 with the government collecting £566million pa, an extra £113million annually at the expense of the British property millionaire.
Closer analysis shows that as much as being a wealth tax, the increase in stamp duty at the £1million threshold is a regional tax since 85% of the total stamp duty paid on £1million+ properties last year came from transactions in London and the South East.
Nicholas Leeming, of Zoopla.co.uk, said: "The Government has identified a rich seam of revenue by raising taxes on those buying the most expensive properties in the country.
"However, with £1million buying little more than a two-bedroom flat in some parts of the capital, the extra stamp duty will not be insignificant for families trying to move up the property ladder in and around London, where the lion’s share of the burden will fall. We may see a small tick up in transactions ahead of April with some buyers trying to beat the deadline but overall the rate change is unlikely to have a major impact on the performance of the prime market over the longer term."
Have your say on this story using the comment section below