According to the latest HMRC statistics, stamp duty tax receipts were also down from £1.3bn in April, £1.41bn in March and £1.05bn in February.
However, stamp duty tax receipts for May were higher than in January, when they came to £848m.
The report noted that higher receipts in April 2025 compared to the same period in 2024 is mainly due to the “decrease in thresholds for residential main rates and first-time buyers’ relief”.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The end of the stamp duty holiday meant March was a bumper month for the tax, and April saw the hangover of the rush of buyers who didn’t complete in time for the deadline. May was always going to be quiet by comparison, down 30% to £918m.
“It goes to show how temporary tax changes can distort people’s behaviours – so there was a rush for the end of the stamp duty holiday and a slump once it ended. It means the subsequent tax hike back to its previous level saw the amount of tax handed over fall back significantly.
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“If the government ends up needing to collect more tax in the Autumn Budget, the potential for people to change their behaviour will be a key consideration. A tax hike that causes a great deal of upset and ends up collecting less tax overall would be the ultimate lose-lose for any government.”
IHT ‘continues to soar’
Meanwhile, inheritance tax receipts for April and May 2025 hit £1.5bn, which is £98m higher than the same period last year.
The latest inheritance tax figures from HMRC show a continued strong upward trajectory over the past few years, which experts have attributed to frozen thresholds.
The current £325,000 nil-rate band has been at that level since 2009. The residential nil-rate band was introduced on a phased basis between 2017 and 2020 and potentially gives an additional £175,000 nil-rate band (making a total of £500,000), subject to certain rules.
The Office for Budget Responsibility (OBR) has suggested significant increases in inheritance tax take will continue over the next few years. Policy changes include limits to agricultural and business reliefs, extending the freeze in inheritance tax nil-rate bands to 2029/30, and including pensions in inheritance tax from 2027.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Inheritance tax continues to soar into the new tax year, with receipts up £98m on where they were at the same point last year. We could well be on course for another record-breaking year. These strong figures were put down to a small number of larger transactions than usual back in April, but as the months progress, we will continue to see more families dragged into the net, as frozen thresholds means fiscal drag remains a huge factor.
“Families have another looming issue on the horizon – from 2027, pensions are expected to no longer be exempt from inheritance tax. It’s a move that will drag many more people into the net and is making them rethink their plans. Those able to access their pensions may decide to gift some of it away to loved ones now rather than wait to leave it to them in their will.”
Some of this article was first published on Mortgage Solutions‘ sister site, YourMoney.com. Read: Inheritance tax bills continue upward trend
