HMRC’s latest quarterly stamp duty statistics showed that, in Q1, total transactions were 18% lower than in the previous quarter and 8% down on the same period the year before.
Residential purchases, which accounted for 89% of all SDLT transactions, were 19% down on the previous quarter and mirrored activity in the wider market when comparing figures annually.
Those purchases liable to pay the tax, if the price paid is £250,000 or more, fell from 127,400 to 101,600 between Q4 2023 and Q1 2024, while those not liable for a stamp duty bill because they fall under the threshold fell from 110,300 to 90,900 over the same period.
Residential receipts, at £1,740m in Q1 2024, were also down quarter-on-quarter and compared to the previous year, with falls of 27% and 13% recorded by HMRC respectively.
First-time buyers claims less relief
The thresholds for first-time buyer relief were temporarily increased on 23 September 2022 so that, on transactions of £625,000 or less, there’s no stamp duty payable for properties valued at £425,000 or less.
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Like other stamp duty transactions, claims for first-time buyer relief also fell. Between Q4 2023 and Q1 2024, a 19% drop in claims was recorded from 31,100 to 24,300, while they fell 2% year-on-year. Relief of £120m was claimed, representing an 18% quarter-on-quarter decrease.
Additional dwellings surcharge
Some 43,800 property purchases were liable to pay the 3% higher rate of stamp duty, which is charged on the purchase of a second home or additional residential properties.
This was down 26% on the previous quarter and 12% lower year-on-year. More than £340m was generated from the 3% surcharge.
Last month, HMRC reported that stamp duty tax intake fell to £771m in February.
