A record total of £16.2bn in Stamp Duty was paid last year, £3bn (23%) more than 2021, according to Coventry Building Society’s analysis of HMRC figures.
In 2021 homebuyers paid £13.2bn in Stamp Duty – this was surpassed in October, making 2022 a record-breaking year for Stamp Duty receipts. 2022 included eight of the top ten highest months on record for Stamp Duty returns.
In December homebuyers paid £1.4bn which is £3.2m lower than December 2021. This could be attributed to the new Stamp Duty thresholds which were set in September.
In the Autumn Statement the Chancellor announced these thresholds will only remain in place until 31st March 2025.
On 10th January the Stamp Duty Land Tax (Reduction) Bill went through a third reading in the House of Commons where an amendment to make the reduction temporary was agreed.
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Last year people paid more tax buying their homes than ever before.
“The new thresholds introduced in September mean homebuyers will get a bit of welcome relief for the next couple of years, but a long-term plan needs to be established.
“The Chancellor has already hinted that it’s going to be a bland budget this Spring, with no tax cuts expected to be announced, but discussions around Stamp Duty shouldn’t be taken off the table.
“We’ve already seen that the fairly blunt instrument of a Stamp Duty holiday in 2020 and 2021 didn’t stifle tax revenues. Taking a creative approach to Stamp Duty reform, with incentives for energy efficient home improvements, for example, could create better outcomes for everyone.
“Allowing a Stamp Duty waiver for downsizers could be another option on the table. There are over nine million households in England with at least two spare bedrooms, if these people want to move to a smaller home they could be hit with a tax bill for thousands.
“That’s an extra cost which could prompt more people to stay in larger family homes for much longer and create unnecessary friction at the top of the ladder.”
