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Residential stamp duty intake flat in Q1 – HMRC

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  • 30/04/2021
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Residential stamp duty intake flat in Q1 – HMRC
Residential stamp duty receipts rose one per cent annually during Q1, despite a 53 per cent surge in transactions stimulated by the tax break, HMRC figures show.

 

The intake was almost the same as receipts in Q1 2020, with the rise at just one per cent. 

Due to the tax holiday, 36 per cent of residential transactions during the quarter were liable to pay stamp duty, down from 67 per cent last year. 

In total, receipts amounted to £1.8bn in Q1.

Vikki Jefferies, proposition director at Primis Mortgage Network, said: “Today’s figures show a clear increase in Stamp Duty Land Tax transactions over the first quarter, underscoring the fact that the mortgage industry is continuing to recover from the impact of the Covid-19 crisis.   

“As we approach the tapered extension of the stamp duty holiday, the priority for the mortgage market will be processing cases quickly and efficiently so that borrowers are able to benefit from the tax saving.’’ 

 

Prime market activity 

The number of property transactions liable to pay the tax fell by 16 per cent in Q1 2021, compared to the same period in 2020. But compared to the end of last year, 10 per cent more transactions met the threshold to pay the property tax.  

This was partially due to the number of properties at prices of more than £1m reaching all-time high levels of transactions.  

The number of transactions for residential properties worth between £1m and £2m amounted to 6,900 up from 6,300 the previous quarter. For properties valued at £2m and higher, there were 1,400 transactions completed, up from 1,300. 

Both categories represented the highest level of transactions for prime properties in a quarter since 2008. 

Andy Sommerville, director at Search Acumen, said: “This latest data shows that the owners and buyers of prime and super-prime properties are driving a large proportion of activity in the property market. 

“The sharp rise in the volume of property transactions worth £1m or more, which are liable to pay stamp duty, could be partly attributed to owners of high value properties in cities selling up and purchasing homes in rural locations.” 

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