HMRC Stamp Duty receipts jump by 21% over past 12 months
Agents wondering why Rachel Reeves left Stamp Duty alone during her recent Budget should look to latest 'bumper' official figures.
The Government enjoyed a bumper increase in Stamp Duty receipts despite a subdued housing market, latest HMRC figures reveal.
There was a 21% jump in the amount received from £8.57 billion to £10.38 billion between 2023-24 and 2024-25.
And there was a 19%, or £870 million, rise in receipts from second property (additional dwelling) transactions to £5.43 billion.
Other HMRC findings include:
Residential transactions increased 20% from 872,000 to 1,049,600
211,700 transactions were subject to HRAD (Higher Rate Additional Dwelling) surcharge on Council Tax, which brought in £2.79 billion.
SDLT (Stamp Duty Land Tax) receipts are concentrated in Southern England.
London was the region with the highest amount of SDLT receipts at £5.14 billion (37% of total SDLT receipts).
Stamp Duty rates changed in April this year, with the nil-rate threshold of £250,000 returned to the previous level of £125,000. And for first-time buyers it decreased from £425,000 to £300,000.
Scrapping Stamp Duty
Chancellor Rachel Reeves decided against any reform of Stamp Duty in last month’s Budget.
But the Conservatives pledged to scrap Stamp Duty altogether if they win the next General Election, although only for primary, not second or buy-to-let, properties.
Ian Futcher, Financial Planner at wealth management firm Quilter, says: “The latest Stamp Duty figures show a market that has remained relatively resilient in terms of transaction numbers, but one where the tax burden on buyers continues to grow.
Residential SDLT receipts rose by 21% over the year, despite house prices being broadly flat.”
“Residential SDLT receipts rose by 21% over the year, despite house prices being broadly flat. Therefore this isn’t a story of booming values but of a system that has become increasingly punitive, with higher surcharges and tighter reliefs pushing up the cost of moving,” he says.
“Claims for First Time Buyers’ Relief jumped by 37% as many rushed to complete before the thresholds tightened in April, securing an average tax saving of around £5,000.”
And Iain McLeod, Head of Private Clients at St. James’s Place, says: “The report is indicative of a cooling property market overall, driven by higher interest rates since 2022, affordability pressures and economic uncertainty.”
