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Stamp duty intake hits record high of £1.3bn in July

  • 20/08/2021
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Stamp duty intake hits record high of £1.3bn in July
The stamp duty land tax receipts reached £1.309bn in July, the highest intake on record for the levy.


Figures from HMRC show this exceeded the previous high of £1.196bn taken in March when the stamp duty holiday was originally expected to end.

HMRC said the intake was “down to the exceptional high number of transactions” due to the tapering of the stamp duty holiday on 30 June.

The figure represents tax levied on property purchase sums higher than £500,000, and second homes and rental properties.

The 14-day payment window for the tax means transactions completed in late June would have been settled in early July, hence the high receipts in the month after the tax break threshold was lowered to £250,000. 

An intake of £1.208bn was recorded in June. 

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “The stamp duty holiday tapered significantly at the end of June, which meant a homebuying frenzy. There were record sales in June, as 213,120 buyers raced to complete before the deadline. 

“Stamp duty is a classic example of how cutting a tax can help change behaviour so dramatically that it boosts the Treasury’s coffers, as people brought sales forward to take advantage of the tax break.”  

She added: “We see this every time there’s a change to stamp duty, and we’d usually expect the tax take to drop significantly below normal levels in the following months.  

“However, there are some signs that record low mortgage rates have continued to support the market, so while we can expect this to be a high point, we’re not expecting it to plummet in the coming months.” 

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