Saturday, August 13, 2022
UK

Property transactions subject to stamp duty increased by 7%

Property transactions

HMRC pointed out that the opening quarter of this year had seen a ‘significant fall’ in stamp duty receipts, which it put down to the end of the stamp duty holiday

The number of property transactions subject to stamp duty increased by seven per cent in the second quarter of 2022 from the previous quarter, the latest figures from HM Revenue & Customs (HMRC) have revealed.

The increase arrests a slide in liable transactions, which had taken place for three consecutive quarters. While the number of transactions liable for stamp duty was up from the first quarter of this year, when compared to the same quarter in 2021 it was down markedly, by 21 per cent.

Despite this, the receipts from stamp duty for the quarter ‒ at a little over £4bn ‒ were up both in comparison to the first quarter of 2022 and the second quarter of 2021, by 17 per cent and 43 per cent respectively.

Of this, £2.975bn was paid by residential buyers, with £1.266bn paid by those subject to the higher rate for additional dwellings.

HMRC pointed out that the opening quarter of this year had seen a ‘significant fall’ in stamp duty receipts, which it put down to the end of the stamp duty holiday.

Karen Noye, mortgage spokesperson at Quilter, suggested that stamp duty could become a ‘political hot potato’ should either of the candidates for the leadership of the Conservative Party opt to come out strongly about its future.

Noye also noted the impact being made by the two per cent surcharge issued on the purchase of residential properties by foreign buyers. To date 12,600 transactions have been subject to the surcharge, bringing in £141m in tax.

Foreign property investment has for a long time been seen as damaging for communities if the properties are ultimately left empty. This is particularly evident in London where prime real estate is bought purely for investment purposes ultimately leaving communities feeling like ghost towns, she added.

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