Stamp Duty plummets by £1 billion following surcharge backfire

Stamp Duty plummets by £1 billion following surcharge backfire

New figures from HM Revenue and Customs suggest that stamp duty receipts have fallen by no less than £1 billion.

The drop was from £12.9 billion in 2017/18 to £11.9 billion in 2018/19.

This is despite overall HMRC tax receipts rising from £594 billion to £623 billion during the same period; this included inheritance tax receipts going up 3.1 per cent to £5.4 billion.

Analysts have rapidly put this down, at least partly, to resistance to purchase buy to let properties as a result of the additional homes stamp duty surcharge introduced in April 2016, and subsequent tax measures making buy to let less attractive.

The Daily Telegraph quotes David Smith of the Residential Landlords Association as saying: “The government are now in the last chance saloon to reconsider tax policy and seek to promote positive growth rather than seeking short-term gains.

He continues: “The people who will really suffer as a result of this fatal loss of supply are tenants, including a significant number of families who are reliant on private landlords for homes, as well as young buyers.”

Shaun Church, of Private Finance, a mortgage broker, adds: “With house price growth more sedate in comparison to recent years, and mortgage rates seemingly staying low, it is likely that first-time buyers will continue to prop up the market as the year progresses.”