Stamp duty tax receipts in England jumped 19% to £14bn in the period from April to November, up £2.2bn from the same period a year ago, data from HMRC shows, although observers say this growth is easing.
The levy was “significantly higher” from April this year in part due to lower tax rates last year following the stamp duty holiday which finished at the end of September 2021, says the government department.
Chancellor Jeremey Hunt’s November Autumn Statement move to reinstate stamp duty cuts until the end of March 2025, rather than permanently, as previously outlined in former Chancellor Kwasi Kwarteng’s September mini-Budget, was “reflected in receipts from October”, the tax body adds.
It says that it expects to see higher stamp duty receipts in December due to “a surge in property completions as people want to be in their new home before Christmas”.
Hargreaves Lansdown senior pensions and retirement analyst Helen Morrissey says: “After years of flying high we are seeing signs of the air starting to be squeezed out of the housing market – stamp duty receipts are higher than this time last year, but the trend is starting to come down.
“The figures run to November but will likely largely relate to transactions agreed a few months earlier before the chaos of the mini-Budget sent would-be buyers running for cover. However, they still reflect the growing nervousness around affordability as the cost of living continued to bite and the market started to slow.
“December often sees something of a stamp duty boost as buyers rush to be in their new homes for the festive season but given market sentiment is near all-time lows, we are unlikely to see the significant boost we saw last year and rising bills and the prospect of a recession on the horizon are likely to make buyers more hesitant to take the plunge over the coming months.”
Overall, during the period total HMRC receipts were 10.1% higher at £490.8bn, up £44.9bn from a year earlier.
Cash returns from income tax, capital gains tax and national insurance contributions were 13% higher at £267.3bn, up £31.5bn. Inheritance Tax rose 16% to £4.8bn, up £600m on the same period 12 months earlier.
Hargreaves Lansdown’s Morrissey adds: “Income tax and national insurance receipts continue to rise reflecting high employment but also the freezing of the income tax thresholds meaning more people are paying more tax.
“With freezes remaining in place until 2028 we will see this burden continue to rise. It’s the same case for inheritance tax thresholds which were also frozen in the Autumn Statement.
“The data says a small number of large transactions pushed up receipts, but the fact remains inheritance tax is becoming a headache for more and more people.”
