Publication type
Research Paper
Series Number
216
Series
SERC Discussion Paper
Authors
Publication date
June 15, 2017
Summary:
We estimate the effect of the UK Stamp Duty Land Tax (SDLT) – a transfer tax on the purchase price of property or land – on different types of household mobility using micro data. Exploiting a discontinuity in the tax schedule, we isolate the impact of the tax from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate jumps from 1 to 3 percent. We find that a higher SDLT has a strong negative impact on housing-related and short distance moves but does not adversely affect job-induced or long distance mobility. Overall, our results suggest that transfer taxes may mainly distort housing rather than labor markets.
Subjects
Link
http://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0216.pdf
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