Latest tax data released by HMRC reveals that stamp duty continued to perform strongly with receipts of £16.9bn in the year to February. This is a significant £6.1bn higher than in the same period last year and surpasses the previous high total for the 2017 – 2018 tax year of £16.43bn.
Commenting on previous SDLT takes, HMRC stated that lower receipts in the tax year 2020 to 2021 were due to a fall in property sales, market uncertainties surrounding the Covid-19 pandemic and the introduction of the temporary reduced rates for SDLT on residential properties.
High SDLT receipts in March 2021 are thought to be due to the strength of the property market alongside forestalling ahead of the introduction of non-resident surcharge, as well as a general uplift in economic confidence following the roll-out of the vaccine and announcement of easing of lockdown.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown commented:
“It’s been a bumper year for HMRC with inheritance tax and stamp duty surging to all-time highs this month while the growing number of people returning to the workforce means income tax and national insurance receipts continue to grow.
Stamp duty has been a stellar performer – up a massive £6.1bn on the same period last year and surging past the previous high set in 2017-18. This is largely due to the stamp duty holiday which ended at the end of September 2021 and the so-called race for space as people looked to move out of cities in favour of larger properties with gardens. These factors kept the property market red hot until the end of the year. However, whether the market can continue to maintain this momentum remains to be seen.”
