Landlords update Stamp duty receipts fall: HMRC

The revenue raised by Stamp Duty Land Tax fell in the first quarter of 2019, as liable property transactions decreased.

Figures from HMRC show transactions decreased by 20 per cent from 316,200 in Q4 2018 to 253,900 in Q1 2019. This mirrors a 20 per cent fall over the same period last year. Similar falls have occurred over the same period of time for several years.

In Q1 2019 SDLT receipts were £2,657m, 19 per cent lower than in Q4 2018. Most of this decrease is due to a fall in residential receipts, which fell by 26 per cent.

Q1 saw 46,800 transactions claim first-time buyers’ relief, making a total of 288,300 claims since the relief’s introduction. The estimated total amount relieved is £680m.

SDLT was abolished for first-time buyers purchasing a property worth £300,000 or less in November 2017. Those buying a home worth up to £500,000 are charged a reduced rate.

SDLT transactions were also 5 per cent lower in Q1 2019 than in Q1 2018. However, the data is not directly comparable with the previous year due to the devolution of SDLT to Wales in April 2018 and the introduction of the 14-day SDLT returns filing window in March 2019.

In Q1 2019, only 65 per cent of residential transactions were liable for SDLT; the lowest proportion it has been since Q2 2013.

Additional dwellings purchased by individuals and residential property purchased by non-individuals are required to pay the standard rate of SDLT plus a 3 per cent surcharge. It applies to purchases of second homes and buy-to-let properties. These rates, formally known as higher rates for additional dwellings (HRAD or ‘higher rates’) were introduced in April 2016.

HRAD transactions decreased by 15 per cent to 51,100 in Q1 2019. The previous year also showed a 15 per cent fall. Compared to Q1 2018, it has fallen by 7 per cent (4,100).