Figures from HMRC revealed that this was also up on a total of £1bn from this time last year. 

So far this year, homebuyers have paid £6.6bn towards the tax, £100m more than the £6.5bn paid over the same period in 2023. 

 

Treasury taking in ‘huge sums’ from stamp duty

The stamp duty threshold has been temporarily increased, meaning people will not pay the tax when purchasing a home priced at less than £250,000. The threshold will be lowered to its previous level of £125,000 in March next year. 

Coventry Building Society has called on the government to reform stamp duty, saying the lower threshold will bring the average tax bill up from £2,768 to £5,268.

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Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “The Treasury is taking in huge sums of property taxes while homebuyers are racking up the debt. A stamp duty bill can be thousands of pounds, so if people don’t have that amount lying around, they’ll probably need to borrow more to cover the tax on their home. 

“In seven months’ time, the scale is set to tip even more in the Treasury’s favour, with the nil-rate band set to halve to £125,000. The Chancellor should see the October Budget as an opportunity to level the scales and announce changes [that] will stop the tax on an average-priced property jumping up by £2,500 overnight. Short-term pain for the Chancellor could result in longer-term gain for the broader economy.” 

Stinton added: “Reducing the burden on homebuyers doesn’t have to be too costly for the Treasury either – the stamp duty holiday in 2020 and 2021 proved that homebuyers can get a break and tax revenue can remain healthy. It may even benefit the economy, 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.” 

 

IHT intake rises 

The inheritance tax (IHT) bill came to £749m in July, a rise from £701m in June. So far this year, the Treasury has received £4.6bn in IHT payments. 

As for the same month a year ago, the IHT bill totalled £603m, while the intake in the first seven months of the year amounted to £4.3bn. 

Rachael Griffin, tax and financial planning expert at Quilter, said: “This increase, ahead of… Labour’s first Autumn Budget, will rekindle debates about whether this tax will be increased as the government attempts to shore up public finances. 

“Speculation is rife that the Chancellor might introduce changes to IHT, particularly targeting Agricultural Property Relief (APR) and Business Property Relief (BPR). These reliefs, which currently allow farms and family businesses to be passed down without incurring prohibitive tax liabilities, might be scaled back.” 

She added: “As Labour navigates these complex issues in the upcoming budget, there is a strong argument for simplifying the IHT system and making it more appealing to gift during your lifetime.

“Simplifying IHT could involve increasing the nil-rate band, which has remained static for over a decade, or potentially lowering the headline IHT rate in exchange for eliminating or reducing complex reliefs. Such reforms could make the system fairer, particularly for middle-income families who increasingly find themselves liable for a tax originally intended for the very wealthy. 

“As the debate on IHT reform continues, the upcoming budget will be crucial in determining whether Labour chooses to maintain the current complex reliefs or pivot towards a simpler, more equitable system that better reflects modern economic realities.”