Residential Stamp Duty Falls In Q4

Residential stamp duty receipts decreased in the final quarter of 2019 whilst first-time buyers (FTB) enjoyed record levels of FTB relief.

Despite market uncertainty in the property last year, the fourth quarter receipts indicated a marginal increase from £3.291 billion in 2018 to £3.299 billion at the end of last year, according to the quarter four stamp duty land tax receipts (SDLT) released by HMRC.

That being said, both first-time buyers and those with additional dwellings enjoyed tax breaks. The first-time buyer relief witnessed the highest quarterly figure (£154 million) since its introduction and represented a 7% annual increase since Q4 in 2018.

The figures, released by HM Revenue and Customs, illustrate the picture of the sector towards the end of the last decade; one of medium-turn declining consumer confidence in residential property but one of holistic returning confidence following Brexit and the election result.

Residential receipts decreased marginally from £2.33 Billion in the final quarter of 2018 to £2.325 billion in 2019.

As transactions in the residential sector fell in 2019, residential receipts accounted for 70% of the total receipts, a 1% fall from the fourth quarter total in 2018.

However, on an annual basis, non-residential receipts increased by 2% from £959 million to £975 million.

The Higher Rate on Additional Dwellings (HRAD) played a significant part in the reduction in government’s stamp duty income. Standard rates residential receipts which exclude the income from HRAD actually increased by 4% from £581 million in Q4 2018 to £602 million.

Conversely, HRAD transactions fell by 4% annually between the final quarter of 2018 and 2019.

Almost half (43%) of all residential receipts, approximately £1.009 billion, were made up from HRAD transactions.

Of this number, £407 million was made from the 3% additional surcharge. However, the 11,100 homeowners who sold their main residence within three years of paying the increased SDLT rate last year, took advantage of the additional dwelling refund, resulting in £155 million being repaid to consumers.

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