Rachel Reeves’s stamp duty raid has backfired after a £541m fall in tax receipts from property sales more than £5m, analysis has revealed.
There were 14pc fewer property sales above £5m in the 18 months following the then-chancellor’s Budget in 2024, when she raised the second-home stamp duty surcharge to 5pc and abolished the non-dom tax regime.
Data from estate agents Knight Frank show that in the subsequent 18 months, the number of sales above £5m dropped from 2,569 to 2,208, when compared with the 18 months before October 2024.
If sales had continued at the same level, the Government could have earned £3.3bn in stamp duty receipts, Knight Frank predicted. Instead, just £2.8bn was raised.
Roarie Scarisbrick, of buying agents Property Vision, said the UK “has not been a welcoming, appealing place for international friends”.
He added that deterring overseas buyers has “not been a profitable exercise for the Government”.
