According to the gov.uk website, UK residents need to pay Stamp Duty Land Tax when they buy a property over a certain value. Where does this money go and what is it used to fund?
I looked at numerous websites, from Wikipedia to a guide on Westlaw to this tax advice website for expats, and even where there was a deep-dive on the history of the tax, it was not disclosed whether it funds a specific thing or not. The closest to that is in the guide I linked to above, in the introduction it says,
Stamp duty land tax is almost eleven years old and there has been virtually no raising of the thresholds to adjust for inflation and it is a major source of revenue for the Government.
However, because that is a paid guide and I was only able to get the introduction, there may be more information available that I do not have access to. I believe the reference to eleven years old is about a new version of the law.
That all said, I am inclined to believe it goes right along with property taxes. So, whatever your property taxes pay for, this likely goes with it. I say that because of the characterization of the tax as described in this article, which says in part:
George Osborne also saw the property market as a rich source of income and whilst there was a drop following the 2007 recession, stamp duty income soon soared, with rapidly rising rates to produce £11.766 billion in the last year. Property taxes now make up 9 per cent of the UK income, which is more than double fuel duty.
Hope this helps.