Figures from HMRC show this was a slight rise on the £1.21bn received in June last year.
So far this year the tax intake for property sales has reached £7.5bn, a 40 per cent rise compared to 2021.
‘Stumbling block for the property market’
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “It’s becoming clearer that this could be yet another record year for stamp duty receipts. That’s great news for the Treasury but people buying homes are facing a relentless rise in the costs of moving.
“In the current environment, with the cost of living taking an even bigger bite out of people’s ability to save up for buying or moving home, soaring stamp duty bills are another stumbling block for the property market.”
Stinton continued to say review and reform of stamp duty looked “long overdue”.
He added: “The average house price in England has risen by £99,000 – from £203,000 to £302,000 – since the existing tax thresholds were set in 2014.
“If the current or future Chancellor is looking for possible ways to maintain a healthy revenue but reduce the burden on homebuyers, they should take a close look at the receipts when the stamp duty holiday was in force. There are more creative solutions available, such as incentives for greener, more energy-efficient properties, which would have the dual benefit of helping housing stock become more carbon neutral and reducing household bills.”
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Our love affair with property continues as stamp duty continues to surge – soaring 27 per cent to £5.2bn between April and June. The pandemic may have convinced people they needed more space and fuelled a move to larger properties but since then we’ve continued to see huge activity in the property market, and it is running red hot. Recent data from Rightmove shows asking prices are at an all-time high but even this isn’t enough to put people off wanting to get their hands on their dream home.
“How long this can continue is subject to debate. The same data shows the number of buyers is starting to fall while the number of people wanting to sell is on the increase. The cost-of living crisis may also lead to more people looking to tighten their belts. The likelihood is we will see the market start to cool off in the coming months. Added to this the stamp duty holiday was also still in force this time last year and will also have had an impact on the increased figures.”
Inheritance tax receipts hit record high
Inheritance tax (IHT) intake in June reached £726m, the highest total since records began.
HMRC said this could be due to a small number of higher-value payments than normal.
June’s intake was also a rise on the £564m received during the previous month.
From April to June, receipts have reached £1.8bn, which is £300m more than the same period last year.
Stephen Lowe, group communications director at Just Group, said frozen tax thresholds and the booming property market were key drivers of growing inheritance tax receipts.
He added: “While only a small proportion of people pay inheritance tax, the amount being paid has more than doubled over the past decade from £752m in Q1 2012 to over £1.5bn Q1 2022.
“The nil rate bands – the size of the estate that can be left without paying any IHT – are set to remain frozen until 2026 and so we can expect to see more and more estates become liable for inheritance tax between now and then.
Lowe said: “The Office for Budget Responsibility (OBR) forecasts that as many as 6.5 per cent of estates could be liable for inheritance tax by 2026 – nearly double the 3.7 per cent that the figures show for the latest financial year. The OBR also revised inheritance tax forecasts up by an average of £0.4bn a year compared to October 2021 estimates because of increased mortality as well as higher house prices.”
He said residential property was usually the “most valuable component” of estates which pay the tax and said the latest Office for National Statistics house price index showing a 13 per cent annual rise in value meant people were approaching or surpassing the threshold unknowingly.
Lowe said: “It makes good sense for people to keep track of the likely size of their estate and the tax rules that will apply to it.”
