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Home Business Stamp duty growth slows as market stutters to a halt

Stamp duty growth slows as market stutters to a halt

by Uma
iStock 1281173455

 

  • Overall stamp duty receipts for April 2022 to January 2023 are £16.8 billion, £1.7 billion higher than in the same period last year. 
  • Inheritance tax receipts are £5.9 billion, which is £0.9 billion higher.
  • Receipts from PAYE Income Tax and NIC1 are £312.6 billion.
  • This is £36.7 billion higher than in the same period a year earlier.
  • Air passenger duty receipts are £2.7 billion, a £1.9 billion boost.

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

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown:

“After flying high for so long there are clear signs the property market is starting to slow, and this can be seen in stamp duty receipts. They are still up on the same period last year, but the direction is turning as mini-Budget mayhem and the cost of living turned people off the idea of moving home. House price growth is stuttering to a halt and homes are taking longer to sell so we will likely see stamp duty receipts come off further in the coming months though mortgage rates have started to come down which could tempt some people into taking the plunge in the coming months.

Ongoing tax threshold freezes continued to play their part with income tax and inheritance tax receipts continuing to rise as more and more people get pulled into paying them. With both freezes currently due to stay in place until 2028 the tax take is only likely to get higher. We can no longer lay claim to inheritance tax being a rich person’s tax as rising property prices mean it becomes a reality for many more families. Even if we see house price falls in the coming months it is unlikely to make a dent in the huge growth seen in recent years and so many more people will continue to be caught.

The bright spot in the mix is that Air Passenger Duty continues its ascent – no-one likes paying tax, but this is a sign that after years of being cooped up at home during the pandemic people are embracing being able to go on holiday. This is something people have been unwilling to give up even in the face of a huge cost of living crisis though how people’s budgets hold up as we go into the summer months remains to be seen.”