You are here: Home - News -

Stamp duty resi transactions fall by a quarter in Q4 – HMRC

by:
  • 31/01/2024
  • 0
Stamp duty resi transactions fall by a quarter in Q4 – HMRC
The number of residential transactions liable to pay stamp duty fell by 25 per cent annually to 127,600 in Q4, data has shown.

This was a three per cent decline on the previous quarter. 

Residential transactions which were liable to pay the tax accounted for 89 per cent of all stamp duty transactions over the period. 

At the same time, the tax intake from residential property transactions came to £3.1bn in Q4, which was 25 per cent lower than the previous year. This also represented a four per cent fall on the quarter before. 

 

Average stamp duty bill falls 

An analysis from Coventry Building Society showed that homebuyers paid an average of £9,937 in stamp duty in 2023, which was lower than the previous year’s average of £11,202. 

While total HMRC receipts for stamp duty amounted to £11.8bn last year, £8.85bn of that was taken from residential transactions.  

Jonathan Stinton, head of of intermediary relationships at Coventry Building Society, said: “Stamp duty is an easy cash grab for the Treasury but a huge burden on homebuyers. Over the years, different Chancellors have dropped hints and sometimes tinkered around the edges, but it’s been obvious for a long time that this is a tax that needs to be properly reviewed and reformed. The March Budget is a great opportunity to make a real change to a tax that is paid by hundreds of thousands of homebuyers every year. 

“Average stamp duty bills have almost doubled over the past 10 years from £5,600 in 2013. But reducing this burden on homebuyers could still benefit the economy – and the Treasury’s coffers – as people could spend the extra cash on improving their new home, boosting the retail and services sectors and returning some tax revenue through VAT.”  

The HMRC data showed that 13 per cent of residential transactions in Q4 were eligible for first-time buyer’s relief, which was flat on the previous quarter. 

He added: “The relief for first-time buyers is clearly very welcome to those getting their foot on the property ladder. But there should also be some consideration to other parts of the market that need more incentive or help to move.  

“Downsizers are a logical group for the Treasury to be looking at in this respect, and we hope that when significant reform of stamp duty happens, it takes these homeowners into account.” 

There are 0 Comment(s)

Leave a Reply

You may also be interested in