Data from HMRC revealed that for the year so far, stamp duty land tax generated £8.8bn in receipts, compared to £8.6bn over the same period in 2023.
For the tax year starting in April, £6.3bn has been paid in stamp duty, up from £5.9bn last year.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Anyone looking to move home in the near future needs to pay close attention to the Chancellor next week. She might announce that the current stamp duty thresholds aren’t going to be extended, or she might silently let them topple off a cliff edge without giving them a mention – either way, if the rumours are true, there’s effectively going to be a tax hike for homebuyers.
“If she makes an announcement and reminds people of the deadline there’s a risk of market distortion, with people rushing to complete on properties before the end of March. If she stays silent there’s a risk that buyers don’t fully realise their tax bill is about to shoot up, so they don’t plan for the additional expense.
“It already feels like the tax hike most people have forgotten about. The deadline for these thresholds was given to us back in November 2022, but I think we all secretly hoped a long-term plan for stamp duty would be established in the meantime. Now it looks like we’ll still be waiting for real reform, and buyers will need to prepare themselves for the tax hike which is potentially coming.”
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Inheritance tax intake rises
Some £736m was paid in inheritance tax (IHT) in September, up from £697m the month before. This was also higher than the £623m paid in September last year.
So far this year, the tax has generated £6bn, up from £5.6bn previously.
Meanwhile receipts from the start of the financial year in April to September totalled £4.3bn, £400m more than the year prior.
Tax receipts unlikely to impact Budget
Laura Hayward, tax partner at Evelyn Partners, said it was “unlikely” that the latest figure would have any impact on the Chancellor’s plans for the Budget, as this would be “determined by fiscal projections and rules over the next five years”.
However, she said “rising tax receipts can tell their own story about what Rachel Reeves is considering for the Budget in order to raise an estimated £35bn, particularly in the case of inheritance tax, capital gains tax and income tax”.
Hayward added: “The steady annual rise in IHT receipts has been ingrained in recent years as inflation has dragged more assets and more estates over the frozen nil-rate bands. Any changes aimed at increasing the IHT take beyond this fiscal drag effect are likely to reap outsize results over the coming years as the baby boomer generation reaches average mortality.
“So it’s no surprise IHT is at the centre of Budget speculation again, with firm reports claiming business and agricultural property reliefs will be reformed and the gifting rules revamped. We have spoken to many people this summer who were bringing forward plans to gift substantial assets, not just to start the seven-year clock ticking, but also to pre-empt an expected CGT rise.”
“It’s not out of the question that the Chancellor could also look at the nil-rate bands, as the residential nil-rate band has come under criticism for discriminating against those who can’t or don’t want to leave their main property to a direct descendant.
“Could the residential nil-rate band be ditched with a less-than-equivalent increase to the main nil-rate band?”
