Record Stamp Duty payment total in 2022-23

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Homebuyers paid out a record of £15.4bn in Stamp Duty Land Tax in the 2022-23 tax year, £1.3bn (9%) more than in 2021-22 (£14.1bn), according to Coventry Building Society’s analysis of HMRC figures.

In March homebuyers paid £1bn in Stamp Duty, an increase of £164m (19%) since February. January was the lowest month for Stamp Duty receipts with £827m, while August was the highest with £1.6bn.

The Office for Budget Responsibility’s Economic and Fiscal Outlook shows property taxes – including Stamp Duty, devolved property taxes, and the Annual Tax on Enveloped Dwellings – is set to drop by an estimated £4.7bn this year. This is due to temporary changes in thresholds and a predicted lower number of property transactions.

Jonathan Stinton, head of intermediary relationships 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 it’s clear those thresholds just aren’t doing enough.

“The OBR’s own figures estimate that almost 200,000 fewer homes are expected to be purchased over the next year – which would be a hit to the housing market worth tens of billions. The Government has a responsibility to step in and do everything they can to help homebuyers, with Stamp Duty being one of the main tools at their disposal.

“The Stamp Duty Holiday in 2020 and 2021, and the subsequent boom in property transactions, showed just how influential Stamp Duty can be. An ambitious and active reform to the property tax could inject life into the market. Alternatively, we could see a structured, concerted effort to increase the supply of new homes which would then allow aspiring first time buyers more choice, and perhaps a smaller tax burden.”

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