London residents are the biggest contributors to stamp duty, paying at least four times more on average than the rest of the country. According to new analysis from London Central Portfolio (LCP), London contributed 39 per cent to Britain’s stamp duty receipts.
The research also showed that the most expensive 10 per cent of all properties contributed about 60 per cent of stamp duty receipts. Two London boroughs alone, the Royal Borough of Kensington and Chelsea and the City of Westminster, contributed in excess of £600m in stamp duty.
“Despite the continued rumble around whether the richest are paying their ‘fair share’, it’s clear that they are the main contributor to stamp duty revenue,” said Naomi Heaton, CEO of LCP. “LCP’s findings indicate that the majority of the Exchequer's £9.5bn tax take is being generated by the 10 per cent most expensive sales and that buyers in London are paying four times more stamp duty than the national average.”
London buyers paid an average of £27,232 in stamp duty: by comparison, buyers in England and Wales paid around £7,161 on average. However, it is also worth noting that London house prices are still the highest in the country, with an overall average price of £623,525 in the capital, compared to £395,560 in the country’s South East and £205,270 in the East Midlands.
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Overall, residential stamp duty receipts increased by £1.3bn in 2017, according to recently published statistics by HMRC. About a fifth of these receipts were generated by the additional 3 per cent tax paid on buy to let properties and second homes. These properties generated 4.1bn of Stamp Duty receipts in total, 43 per cent of the total tax take.