Property News

Average Stamp Duty Charge Rises to £8,400, Reports HMRC

Em Morley - October 2, 2018

The average Stamp Duty charge on a residential property transaction rose by 7% in the last financial year, to hit £8,400, according to HM Revenue & Customs (HMRC).

HMRC has recently released its Annual Stamp Duty Statistics, covering the financial year 2017-18.

During this timeframe, Stamp Duty receipts increased by 10%. HMRC reports that £12,905m was raised, with 97.3% coming from property transactions in England. Wales and Northern Ireland contributed just 2% and 0.7% respectively. Scotland has its own devolved system.

Within England, property sales in London contributed £4,860m, or 39%, of total Stamp Duty receipts.

Generally, properties worth over £1m accounted for just 3% of transactions, but a significant 44% of total Stamp Duty receipts during the year.

The majority of Stamp Duty receipts – £9,275m – came from residential transactions, of which HMRC reports that there were 1.1m.

The average Stamp Duty charge per residential property transaction increased by 7% over the last financial year, to reach £8,400.

During 2017-18, there were 69,100 property transactions for which the Government’s first time buyer Stamp Duty relief was claimed, totalling an exemption of around £160m. This relief was introduced in the Autumn Budget last November.

In the same timeframe, 252,000 additional dwellings transactions were recorded, bringing in a higher amount of receipts, at a total of £4,060m. Of this, £1,895m worth of receipts came from the 3% Stamp Duty surcharge for extra homes.

Additional dwellings transactions accounted for 23% of all residential sales and 44% of residential Stamp Duty receipts.

As a landlord, you will be subject to the 3% Stamp Duty surcharge on the purchase of additional properties, including buy-to-let and second homes, worth £40,000 or more.

We have compiled a handy guide to help you understand these Stamp Duty charges in more detail – click the following link to read the article: