You are here: Home -

Treasury raises £12.3bn in stamp duty despite tax holiday

0
Written by:
21/09/2021
The Treasury has pulled in £12.3bn in stamp duty since the beginning of the tax holiday in July 2020, according to figures.

Analysis of HMRC stats by Coventry Building Society shows stamp duty receipts for August were £910m, taking total receipts for the first eight months of the year to £7.6bn, up from £5.2bn during the same period in 2020.

It comes despite the stamp duty holiday, which meant buyers did not have to pay any tax on the first £500,000 of a property price until the end of June this year.

The final phase of the stamp duty holiday – with the threshold at £250,000 – is due to end on 30 September.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp duty has continued to be a very lucrative source of income for the taxman, even with a large proportion of property purchases being exempt from it for over a year. Clearly, there’s still a very healthy market for higher value homes, second homes and rental properties.

“There’s still momentum in the property market with lots of people still looking to buy and the current starting point of £250,000, introduced in July, means people buying an average-priced home will now trigger a tax bill. The size of those bills and the number of people paying them will only increase once the holiday ends in full on 30 September.”

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “A strong housing market saw stamp duty surge to ever higher levels as buyers tried to get their transactions over the line before the stamp duty holiday relaxed in early July. Whether we will see housing market activity drop in the coming months, only time will tell.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week