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Stamp duty land tax report

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HMRC has published a paper which evaluates how commercial property transactions have responded to changes in the rates of stamp duty land tax (SDLT). The data compares transactions before and after the 17 March 2016 change from the old ‘slab’ system (with a single tax rate applying to the whole of the consideration) to the ‘slice’ system (with tax rates applying to consideration falling within each band). Residential property transactions moved to the slice system in 2014.

The paper concludes that a 1% increase in the effective tax rate leads to an 11.7% reduction in commercial transactions, suggesting that commercial transactions are ‘more responsive than previously thought and more responsive than residential transactions’.

Issue: 1556
Categories: News