Whilst last year’s rise in stamp duty saw the property market panic, it appears that people are not being deterred from purchasing additional homes.
HMRC data indicated that transactions subject to stamp duty during Q2 of 2017 were up by 8.7% in comparison to Q1, at a total of 213,700. From this, those liable for the additional property charge reached 60,000, having grown from 58,200 in Q1.
Cumulatively speaking, stamp duty took an overall sum of £2.3 billion during Q2. Whilst this is up from £2 billion in Q1, it is the same as the correspondent period in 2016.
The slowing in revenue is also reflected in HMRC’s total receipts for the additional rate of stamp duty. Although it took the slightly higher amount of £503 million in Q2 compared to Q1’s £464 million, it’s still lower than Q4 of 2016 where £525 million was taken.
The majority of transactions fell into the bracket below £250,000, at a proportion of just over a third (34%).
Of the transactions between £1 and £2 million, 37% attracted the additional rate, whilst the proportion rose to 40% for those valued over £2 million.