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Home Finance Stamp duty continues to surge amid cost-of-living crisis

Stamp duty continues to surge amid cost-of-living crisis

by Uma
iStock 1367867682
  • Stamp duty taxes remain high at £10.7bn between April and September 2022 – £2.2bn higher than last year.
  • This reflects the stamp duty holiday that was in force until September 2021.
  • Income tax and national insurance receipts from April to September 2022 were £190bn – £24.6bn higher than the same period last year.
  • This reflects a 2.8% increase in people in the workforce – approx. 803,000 people and the freezing of tax thresholds.
  • Air passenger duty was £1.6bn -a huge increase of £1.3bn.

HMRC has released the latest tax receipt and NI data

HMRC tax receipts and National Insurance contributions for the UK (monthly bulletin) – GOV.UK (www.gov.uk)

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:

“Stamp duty continues to surge – up a whopping 26% on the same period last year. This is partly reflective of the stamp duty holiday that was in place last year, but the figures are nonetheless hugely impressive. There are signs the air is starting to come out of the inflated housing market in recent months as mortgage rates increase and the rising cost of living puts pressure on people’s budgets. We may see these figures tail off in the coming months as people decide to put off moving home. This is particularly the case since last month when the so-called mini-Budget brought chaos to the markets pushing up mortgage rates and, in some cases, putting that dream property out of people’s reach.

Air passenger duty continues its ascent – It’s still below pre-pandemic levels but it’s soaring skyward as we raced to book our summer holidays as soon as travel restrictions were lifted. However, as we move into the Autumn and the spectre of high energy prices and soaring inflation continues to lurk it remains to be seen if our budgets can stretch to a sunshine break next year -we could see people cutting back as they tighten their belts.

Income tax and National Insurance continue to rise – up an impressive 13% on the same period last year. This is largely reflective of a rise in the number of paid employees – over 800,000 – as employers continue to scramble to fill vacancies. The number of job vacancies is starting to fall back a little but recent data shows they remain high with ONS figures putting the figure at over 1.2m between July and September. We should see this figure fall as the 1.25 percentage point increase in National Insurance has been reversed from November, but they will be coming off all-time highs.”