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Homebuyers paid over £19bn in Stamp Duty in the last tax year

Christina Hoghton
Written By:
Posted:
25/04/2023
Updated:
25/04/2023

Inheritance tax receipts also rose as a result of frozen thresholds

Stamp tax receipts for April 2022 to March 2023 hit £19.3 billion, according to the latest data from HM Revenue & Customs.

That’s £0.7 billion higher than in the same period a year earlier.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Stamp taxes soared in the last tax year surpassing £19bn in a roller coaster year that started strongly and rapidly ran out of steam. The cost-of-living crisis put a huge dent in people’s finances forcing many to put off their dream of home ownership and we saw house price growth starting to cool rapidly.

“The mini-Budget then introduced real chaos pushing up mortgage rates and forcing providers to take deals off the table. We’ve seen rates come down since, but many would-be buyers are holding back to see if they come down further before taking the plunge while others see the tough economic climate and its potential for redundancies as good reason to postpone a purchase.

“The strong receipts have been bolstered by strong house price performance earlier in the year. The uncertain market outlook means we could see receipts more muted over the coming months.”

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Inheritance tax rise

Inheritance tax receipts for the last tax year rose to £7.1 billion – £1.0 billion higher than last year, according to HMRC.

Morrissey explained: “This is largely down to the ongoing freezing of thresholds which means more and more households are being caught in its trap – it’s certainly not a rich person’s tax any more as years of strong house price growth drag more of middle Britain into its orbit.”