Wednesday, 10 January 2018

Fun with numbers

From City AM:

Last month Persimmon chairman Nicholas Wrigley and Jonathan Davie, the chair of its remuneration committee quit, after it was revealed Fairburn along with 140 senior management were in line for payouts totalling an estimated £800m in aggregate...

Persimmon said it has made a "significant contribution to increasing UK housing supply" since 2012 by building more 80,000 new hones. Annual production has jumped by 70 per cent and cash coffers swelled in 2017 jumping, from £913m to £1.3bn.

Let's be generous and assume that the bonuses relate to the whole five year period.

£800 million ÷ 80,000 homes = £10,000 per home.

Based on an average selling price of a Persimmon home of £225,430, the SDLT for a first time buyer would be £nil and for a second home buyer it would be £8,771.

Funny how the likes of City AM/The Taxpayers' Alliance wail about Stamp Duty Land Tax but not the extra £10,000 which these companies can charge for a home (largely because of Help To Buy). City AM's editorial even praises such bonuses (Bonuses are the best motivators we have)!