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Stamp Duty central - new data revealed

ended 31. January 2023

This morning, HMRC published a heap of data about the stamp duty collected on residential property transactions and stocks and shares and other securities. You can read the full report >> here << but key points below. Any thoughts, send them across ASAP as this story is BREAKING.

  • total stamp tax receipts have risen between financial year 2020 to 2021 and 2021 to 2022, increasing by 50% from £12,345 million to £18,465 million
  • Stamp Duty Land Tax (SDLT) receipts increased by 63% from £8,670 million to £14,100 million between financial year 2020 to 2021 and 2021 to 2022
  • stamp taxes on shares and other liable securities (SDRT and SD) receipts have risen by 19% from £3,675 million to £4,370 million between financial year 2020 to 2021 and 2021 to 2022
  • residential SDLT receipts have risen by 69% between financial year 2020 to 2021 and 2021 to 2022, from £6,010 million to £10,170 million
  • non-residential SDLT receipts increased by 48% between financial year 2020 to 2021 and 2021 to 2022, from £2,660 million to £3,930 million
  • SDLT receipts in England have mirrored the rise in total receipts between financial year 2020 to 2021 and 2021 to 2022, increasing by 63% from £8,610 million to £14,000 million
  • SDLT receipts in Northern Ireland have also risen from £60 million to £100 million between financial year 2020 to 2021 and 2021 to 2022
  • London was the area with the highest amount of SDLT receipts in financial year 2021 to 2022, £5,085 million or 36% of total SDLT receipts. This was slightly lower (4% fall) than in 2020 to 2021
  • properties valued at £250,000 or less accounted for 52% of all transactions (1 percentage point higher than financial year 2020 to 2021). These properties accounted for 9% of total SDLT receipts (a fall of 2 percentage points compared to financial year 2020 to 2021)
  • properties valued at over £1 million accounted for 3% of all transactions (remaining unchanged from financial year 2020 to 2021). These properties accounted for 52% of total SDLT receipts (5 percentage points lower than in financial year 2020 to 2021)
  • there were 284,100 transactions that were eligible to pay the higher rates on additional dwellings (HRAD), which was 46,900 (20%) higher than in 2020 to 2021. HRAD receipts were £4,560 million in 2021 to 2022 which is £1,190 million (35%) higher than in financial year 2020 to 2021
  • 10,000 transactions were subject to the new Non Resident Stamp Duty Land Tax surcharge that was introduced on 1 April 2021. Up to the 31 March 2022 this gave rise to an additional £105 million of tax

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
These statistics clearly show two things. Asset prices significantly increased between tax year ending 21 and tax year ending 22 and thresholds and allowances did not keep up with inflation. This was great for the treasury but is short sighted. By not indexing thresholds and allowances they have increased the tax burden on a population that is already going through a recession. This will mean a significant decrease in revenues for the next financial year as confidence is low and transaction levels will have dried up. The biggest tool in the government's arsenal (apart from Rishi Sunak) is the ability to stimulate growth through targeted tax cuts. These need to be through business or a generic crowd-pleaser like a reduction in our eye-watering VAT rate.
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Zaid Patel
Director at Highcastle Estates
The latest stamp tax stats show some interesting signs for the economy and the property market. With a 50% increase in total receipts, and a 69% hike in residential SDLT, it looks like things are picking up. London still takes the cake for the highest amount of SDLT, with 36% of the total receipts coming from there. However, the rise of SDLTs is more likely to do with the fact that we had the SDLT holiday and pent up demand, rather than a healthy increase in transactions.