§ Mr. LawsTo ask the Chancellor of the Exchequer (1) what his estimate is of the cost of the Pre-Budget Report 2000 decision to abolish stamp duty on property transactions in deprived areas for each year from 2000–01 to 2005–06; what assessment has been made of the effects of this policy on urban regeneration; and if he will make a statement; [130134]
(2) what his estimate is of the total annual cost of the stamp duty exemption on commercial property in deprived areas; what assessment has been made of the economic benefits of this relief; and if he will make a statement. [130238]
§ John HealeyThe cost of abolishing stamp duty on property transactions under £150,000 in deprived areas from 30 November 2001 was £10 million in 2001–02 and £70 million in 2002–03. Estimates for later years are not yet available. The annual cost of exempting commercial properties prior to Budget 2003, included in the above amounts, was under £1 million.
The estimate of the additional cost from lifting the £150,000 cap for commercial property in deprived areas, as published in table A1.1 of this year's Financial Statement and Budget Report [HC 500], was £90 million in 2003–04 and £50 million thereafter.
This measure creates an incentive for purchasers of residential and non-residential property to invest in areas that they might not previously have considered. The social and physical benefits that follow when such areas are occupied by residents and businesses will provide a boost to the regeneration of these areas. We are committed to ensuring the effectiveness of the measure and are currently considering a range of options to evaluate the measure in time for the first report to the European Commission in 2004.
§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the revenue cost of restructuring stamp duty on residential property sales so as to charge marginal rates of(a) 0 per cent. on property sales of £100,000 or less, (b) 2 per cent. on sales revenue of between £100,000 and £200,000, (c) 3 per cent. on sales revenue of between £200,000 and £400,000, (d) 4 per 865W cent. on sales revenue of between £400,000 and £750,000 and (e) 5 per cent. on sales revenue of over £750,000; and if he will make a statement. [130150]
§ Ruth KellyThe revenue cost of restructuring stamp duty on residential property sales according to the scheme described above is estimated to be £1.1 billion in 2004–05. This does not include any allowance for behavioural changes.