Anyone hoping for a cut in Stamp Duty in next month’s Autumn Budget may need to look away now.
HMRC has issued annual data based on the 2016 financial year on Stamp Duty receipts, revealing a record 17% boost in the amount paid on residential property to £8.5bn compared with 2015.
Transactions in London contributed the most Stamp Duty revenue at £3.4bn or 41% of the total value, followed by the south-east at £1.8bn or 21% of the intake.
However, the volume of transactions for 2016 was actually down 8% to 1.09m, the lowest level since 2013-14.
The report also provides the first annual snapshot of the additional Stamp Duty surcharge introduced in April 2016.
The Stamp Duty income was boosted by the introduction of the additional 3% rate, accounting for 19% of residential transactions or 211,000 and raising £3.3bn – of which £1.7bn was the extra 3% element – or 39% of the total value of receipts.
The average value of residential property transactions increased very slightly from £272,000 to £275,000 in 2016- 17, with the average Stamp Duty receipt increasing 27% to £7,900.
Buyers of additional properties paid on average £276,000 during the year, paying £16,000 in Stamp Duty.
Of the total additional properties revenue in 2016-17, 97% came from transactions in England, with Wales accounting for 2% and Northern Ireland 1%.
In England’s regions, London contributed the most revenue from additional property transactions at £1.39bn – 43% of total SDLT receipts from additional property transactions – followed by the South-East at £635m or 20% of the total.
Overall, transactions for properties valued at £250,000 or less accounted for the majority of residential transactions at 64% but only 12% of receipts, while sales over £1m accounted for 3% of transactions but 42% of total Stamp Duty take.
The figures provide a useful insight into the effect Stamp Duty is having on transactions, with volumes falling across all price bands in England, Wales and Northern Ireland.
There was an 11% drop in residential transactions subject to Stamp Duty worth £250,000 or less, a 2% fall between £250,000 and £1m and a 10% drop over £1m.
London and the south-east saw the biggest falls with a 25% and 22% fall in the £250,000 price band respectively.
London also saw transactions slip by 13% in the £250,000 to £1m band and fall by 15% for transactions worth more than £1m.
Nick Leeming, chairman of Jackson-Stops, is still hopeful that the Chancellor would consider calls for reforms to Stamp Duty.
He said: “Although the Treasury will be pleased to see Stamp Duty receipts have generated £8.5bn in revenue on residential transactions, Philip Hammond must view the property market through the eye of the home owner and come up with a solution in the Autumn Budget.
“The Government has been too harsh on buyers in the £1m-plus market, which in fact generates 30% of all Stamp Duty receipts.
“If they were to take steps to reform the impact Stamp Duty has on the top end of the market, even just marginally, they would not only see their revenue dramatically increase but it would also get the market moving again at all levels.”