Brexit subdues property tax take
5 Feb 2020
Brexit had a dampening effect on stamp duty land tax (SDLT) receipts at the end of last year with the figure flatlining at £3.3bn, less than 1% ahead of the tax take recorded in the same quarter in 2018
5 Feb 2020
There were 314,700 transactions in the quarter, very similar to Q4 2018, and residential stamp duty land tax (SDLT) receipts remained unchanged whilst non-residential receipts increased by less than 2% from £959m in Q4 2018 to £975m in Q4 2019.
Residential transactions increased by less than 1%, from 285,200 in Q4 2018 to 285,700 in Q4 2019. Liable residential transactions also increased by less than 1%, between Q4 2018 and Q4 2019 (from 188,900 to 189,300).
Non-residential transactions decreased by 4% from 30,100 in Q4 2018 to 29,000 Q4 2019, with the majority of this decrease relating directly to changes in non-liable claims.
Claims for first time buyer’s relief hit a record high of £154m in Q4 2019, the highest quarterly figure since its introduction, with a 7% increase since Q4 2018.
HMRC’s analysis shows the total amount of tax foregone since the introduction of first time buyer’s relief in November 2017 now tops £1bn.
The relief applies to purchases of dwellings for £500,000 or less, provided the purchaser has never owned a property and intends to occupy the property as their only or main residence. Under the relief, transactions valued at £300,000 or less are not liable.
Transactions valued at more than £300,000 but less than £500,000 are liable to pay 5% SDLT on the portion over £300,000.
HMRC data shows 22%, or 62,800, residential transactions claimed first time buyer’s relief in Q4 2019, similar to the 21% reported for Q4 2018.
Of these, 48,400 transactions were non-liable and paid no SDLT. In total, there have been 464,700 claims since the relief’s introduction. The estimated total amount relieved over that period is £1.1bn.