Stamp duty receipts surged by almost a quarter to £2.6 billion at the end of Q3 2017 as more homeowners are affected by the tax.
HMRC’s quarterly stamp duty land tax report reveals estimated receipts from residential transactions in Q3 2017 were 23% higher than at the end of Q3 2016.
The number of purchases liable for stamp duty also increased by 7%, compared to the same time last year.
All residential transactions above £125,000 in England and Wales are liable for stamp duty, which is charged at the following rates:
- 2% on the portion of the property price between £125,000 and £250,000
- 5% on the portion between £250,001 and £950,000
- 10% on the portion between £950,001 and £1.5 million
- 12% on anything £1.5 million.
The statistics pile more pressure on chancellor Philip Hammond, who is facing calls to lower stamp duty before he delivers his first Autumn Budget on 22 November 2017.
Concerns have been raised over the tax keeping buyers in houses that are too large for their needs, while also making it tough for first-time buyers to take their first steps on the property ladder.
As a result, the chancellor is understood to be considering a cut in stamp duty for first-time buyers only.
Whatever Mr Hammond reveals towards the end of the month, receipts are likely to decline by Q3 2018 once Wales replaces stamp duty with its own land transaction tax in April 2018.