Stamp Duty (Hansard, 18 June 1992)

§ Mr. Channon
To ask the Chancellor of the Exchequer what were the reasons for his decision not to extend stamp duty relief on home purchases.

§ Mr. Nelson
When my right hon. Friend the Chancellor announced the increase in the stamp duty threshold last December, he made it clear that it was a temporary measure for eight months to help bring forward transactions in the housing market. As I explained in the debate on Second Reading of the Finance Bill on 2 June,Official Report, col 770, the cost of any extension of the threshold increase would be substantial and would make it more difficult to meet our public expenditure priorities.

§ Mr. Moate
To ask the Chancellor of the Exchequer what is his latest estimate of the actual revenue that will be foregone in 1992–93 financial year as a result of the temporary arrangements for the relief from stamp duty of property conveyances up to £250,000 in value; what is his estimate of the likely yield from such stamp duties in the year 1992–93 once the temporary relief is ended; and what is the likely yield from properties valued at more than £250,000 in the current financial year.

§ Mr. Nelson
The estimated cost in 1992–93 of the temporary increase in the stamp duty threshold from £30,000 to £250,000 is £290 million. The forecast yield in 1992–93 from stamp duty on land and property below the temporary threshold which becomes chargeable from 20 August is £370 million. The yield in 1992–93 if the threshold were £250,000 throughout the year would be about £300 million. Not all of this will necessarily come from properties valued at more than £250,000. Duty on the grant of a new lease is charged by reference to the premium and the rent payable.
During the debate on the Finance Bill on 2 June I referred to the total yield from stamp duty on houses amounting to almost £1.4 billion. It may be helpful if I clarify that the total yield of all stamp duty in 1992–93 is estimated to be £1.5 billion, whereas the yield in respect of land and property in a normal year would be almost £1 billion.