Stamp duty tax receipts for the period from April to August 2024 are £7.2 billion, which is £0.8 billion higher than the same period last year.

The figures, released over the weekend, have added to calls for stamp duty reform.

Dan Tomassen, tax director at accountancy firm HW Fisher, says:“As a result of the fall in interest rates and the fear that Capital Gains Tax rates will increase, it’s no surprise that HMRC has cashed in £7.2 billion, £0.8 billion higher than the same period last year. Rightmove shared that house prices grew at twice their average rate in September.

“It is essential that the Chancellor Rachel Reeves prioritises Stamp Duty in the next budget. With house prices rising and cost-of-living at an all-time high, the government should strongly consider extending the Stamp Duty tax relief provided to first-time buyers under the previous government.”

Thousands of first-time buyers benefited when stamp duty rates were temporarily reduced in the infamous 2022 mini budget. Stamp duty rates will return to their previous thresholds from the 1st of April 2025, assuming no further changes are announced in the Autumn Budget. 

As a result,  the number of first-time buyers liable to pay SDLT will increase as the nil-rate threshold reduces from £425,000 to £300,000. First-time buyers purchasing homes priced between £500,000 and £625,000 will also lose their eligibility for first-time buyer relief. These changes mean a third of first-time buyers in England will pay more stamp duty from April next year than they do today. 

Stamp duty remains essentially a tax on moving home in Southern England, with 81% of total SDLT receipts coming from Southern England according to an analysis by Zoopla.

Last week UK Finance, the financial services sector’s main trade body, urged the government to help first-time buyers by making permanent the current temporary nil-rate bands on stamp duty up to £425,000; it also wanted help for so-called “last time” buyers through an independent advice service to assist older homeowners with their housing needs and minimising upfront costs for those choosing to downsize, such as a stamp duty exemption.