They paid out £1.3 billion more than they did in the previous year
Homebuyers paid a record of £15.4 billion in Stamp Duty Land Tax in the 2022-23 tax year, £1.3 billion or 9% more than the £14.1 billion paid in 2021-22.
Analysis of HMRC figures by the Coventry Building Society also revealed that homebuyers paid a total of around £1 billion in Stamp Duty in March, an increase of £164 million or 19% since February.
Coventry said January was the lowest month for Stamp Duty receipts with £827 million, while August 2022 was the highest with £1.6 billion.
The Office for Budget Responsibility’s Economic and Fiscal Outlook showed that property taxes – including Stamp Duty, devolved property taxes, and the annual tax on enveloped dwellings – is set to drop by an estimated £4.7 billion this year due to temporary changes in thresholds and a predicted lower number of property transactions.
“Last year, people paid more tax buying their homes than ever before,” said Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society. “The new thresholds introduced in September mean homebuyers will get a bit of welcome relief for the next couple of years, but it’s clear those thresholds just aren’t doing enough.
“The OBR’s own figures estimate that almost 200,000 fewer homes are expected to be purchased over the next year – which would be a hit to the housing market worth tens of billions. The government has a responsibility to step in, and do everything they can to help homebuyers, with Stamp Duty being one of the main tools at their disposal.
Stinton also pointed out that the Stamp Duty holiday in 2020 and 2021, and the subsequent boom in property transactions, showed just how influential Stamp Duty could be.
“An ambitious and active reform to the property tax could inject life into the market,” he commented. “Alternatively, we could see a structured, concerted effort to increase the supply of new homes which would then allow aspiring first-time buyers more choice, and perhaps a smaller tax burden.”
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