Stamp duty tax collected by the government totalled £15.1bn during April 2021 to January 2022, an increase of £5.3bn compared to the same period last year, according to recent figures from HMRC.
The increase reflects substantial recovery across property market sales, driven by a reduction in market volatility compared to 2020, and the extension of a temporary tax holiday on residential properties between July and September.
Figures were particularly high in March 2021, climbing to £1.2bn, as vaccines began to rollout, lockdowns gradually eased, and consumers pre-empted non-resident surcharges, set to come into force in April, according to the government department.
“2021 was a record year for the Treasury, with the highest ever stamp duty receipts in a calendar year and it’s no surprise that this tax revenue stream remains strong in 2022, particularly with house prices continuing to rise and demand staying strong amid the ‘race for space’ created by home owners’ changing requirements,” says Coventry Building Society head of intermediary relationships, Jonathan Stinton.
“After a record year in 2021, we expect stamp duty receipts will return to the long-term trend of steady increases over time in the coming months, and with average house prices still on the rise, the Treasury will continue to bring in billions, adding substantially to the cost of moving home.”
There were also substantial increases across June and July, and then September and October, driven primarily by transactions completed before the stamp duty holiday close at both 30 June, on the first £500,000, and 30 September, on the first £250,000 of the value of a property.