Homebuyers have paid out a total of £13.3bn in Stamp Duty so far this year, making 2022 a record-breaking year for Stamp Duty Land Tax receipts – according to Coventry Building Society’s analysis of HMRC figures.
The total amount of Stamp Duty paid in 2021 was £13.1bn. This figure is already 1.7% higher than last year, and there’s still two months to go.
In the last three years (2021, 2020, 2019) December has been the month which has seen the highest amount of Stamp Duty paid. If that trend continues homebuyers will have paid billions more this year than ever before.
In last week’s Autumn statement the Chancellor said that the Stamp Duty cuts announced in the mini budget will only remain in place until 31 March 2025, which could create some short term relief for homebuyers.
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, said: “Ten months into this year and homebuyers have already paid more Stamp Duty than ever before. With December historically being a high-paying month for Stamp Duty it seems safe to assume that, even with the cuts effective from September, 2022 is going to set an almighty record for the amount homeowners have paid in property tax.
“The total amount homebuyers spend on Stamp Duty should reduce next year as the new thresholds lighten the tax bill for many homebuyers, it’s just a pity that these thresholds are now going to be temporary. When March 2025 comes around it will be disappointing to simply revert to the previous thresholds which were set back in 2014. They’ll be over a decade old and therefore out of touch with how the market has shifted.
“The rules on Stamp Duty need be modernised to reflect the challenges homebuyers are facing today. The government shouldn’t underestimate how much impact these changes could have. The Stamp Duty Holiday in 2020-2021, and the subsequent boom in property transactions, shows how influential Stamp Duty can be. Ministers should see it as a valuable tool to help shape the market to create better outcomes for everyone.”