Government coffers swell with record £12.4bn stamp duty take
The receipts from stamp duty for 2022 have already surpassed last year’s total, setting a fresh record, figures from HM Revenue & Customs (HMRC) reveal.
The data revealed that overall receipts from stamp duty between April and October 2022 totaled £12.4bn.
That is up by £2.2bn on the same period a year ago.
HMRC suggested the “significantly higher receipts” from April onwards can be explained in part by the lower tax rates which were in place in 2021 due to the stamp duty holiday, introduced at the outset of the pandemic.
Analysis of the figures by Coventry Building Society found that homebuyers in 2022 have already paid more stamp duty than in all of 2021, with two months still to go.
It noted that in 2021 a total of £13.1bn was paid, yet homebuyers have already paid £13.3bn this year.
2022 set for record-breaking stamp duty in-take
The mutual added that over the last three years, December has been the month which has seen the highest amount of stamp duty paid, as buyers rush to complete deals before Christmas. If that trend continues, then it will only reaffirm 2022’s status as a record-breaking year for stamp duty.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said that 2022 was on course to set “an almighty record” for stamp duty receipts, even with the stamp duty cut introduced in September.
At last week’s Autumn Statement, Jeremy Hunt, the Chancellor of the Exchequer announced that the stamp cut will only be temporary, with the nil rate band reverting back to its previous level from March 2025.
Stinton said: “The total amount homebuyers spend on stamp duty should reduce next year as the new thresholds lighten the tax bill for many homebuyers, it’s just a pity that these thresholds are now going to be temporary.
“When March 2025 comes around it will be disappointing to simply revert to the previous thresholds which were set back in 2014. They’ll be over a decade old and therefore out of touch with how the market has shifted.”