Stamp duty receipts leap 23% as property values climb
October 31st 2017
7% more SDLT-liable residential property transactions went through in Q3 this year compared to the same period in the previous year, bringing in £2,625m in tax receipts, according to the latest batch of data released by the ONS. That’s a 23% jump in SDLT revenues for the Treasury’s coffers compared to Q3 2016 – and markedly up on anything pre-April 2016, when the Additional Rate was brought in… The most prominent uptick in the number of SDLT-liable resi transactions has been in the over £500k segment. The total in Q3 2017 was 18% higher than in Q3 2016. Financial year-to-date for 2017-18, the number of transactions is 13% higher than the same period in 2016-17. The increase in deal numbers gets less noticeable in lower-value segments: There were just 2% more liable sub-£250,000 transactions in Q3 2017 compared to 2016, and 11% more in the £250,000 – £500,000 bracket. Generally speaking, anything over £125,000 is liable for stamp duty, although “additional properties” (e.g. second homes or buy-to-let investments) under that threshold are still liable for the 3% additional rate, which has been in play since last Spring. This data set uses non-seasonally-adjusted numbers (which can make for lumpy quarterly changes). Q1 2016 still shows a remarkable peak – as buyers rushed to beat the introduction of the Additional Rate Stamp Duty in April. That means that financial year-to-date comparisons are a bit off this time around. Estimated SDLT receipts from residential transactions for the financial year-to-date for 2017-18, however, are 21% higher than the same period in 2016-17. The residential transactions receipts since Q2 of 2016 include those from transactions paying the higher rate of SDLT on additional properties. 124,000 “additional properties” – those liable for the 3% SDLT surcharge – have transacted so far in the 2017-18 financial year, bringing in £2,063m in SDLT receipts, of which £1,036m is attributed to the additional 3% element. It’s worth flagging here that this total will go down – potentially by quite a lot – as homeowners are able to claim the 3% back if they sell their main residence within three years of paying the higher rate; the £1,1036m is net of any refunds. 6,800 additional property refunds totalling £80m were paid in 2016-17, with a further £105m repaid in the financial year-to-date 2017-18.
SHARE POST
  
Stamp duty receipts leap 23% as property values climb
October 31st 2017
SHARE POST

  
7% more SDLT-liable residential property transactions went through in Q3 this year compared to the same period in the previous year, bringing in £2,625m in tax receipts, according to the latest batch of data released by the ONS. That’s a 23% jump in SDLT revenues for the Treasury’s coffers compared to Q3 2016 – and markedly up on anything pre-April 2016, when the Additional Rate was brought in… The most prominent uptick in the number of SDLT-liable resi transactions has been in the over £500k segment. The total in Q3 2017 was 18% higher than in Q3 2016. Financial year-to-date for 2017-18, the number of transactions is 13% higher than the same period in 2016-17. The increase in deal numbers gets less noticeable in lower-value segments: There were just 2% more liable sub-£250,000 transactions in Q3 2017 compared to 2016, and 11% more in the £250,000 – £500,000 bracket. Generally speaking, anything over £125,000 is liable for stamp duty, although “additional properties” (e.g. second homes or buy-to-let investments) under that threshold are still liable for the 3% additional rate, which has been in play since last Spring. This data set uses non-seasonally-adjusted numbers (which can make for lumpy quarterly changes). Q1 2016 still shows a remarkable peak – as buyers rushed to beat the introduction of the Additional Rate Stamp Duty in April. That means that financial year-to-date comparisons are a bit off this time around. Estimated SDLT receipts from residential transactions for the financial year-to-date for 2017-18, however, are 21% higher than the same period in 2016-17. The residential transactions receipts since Q2 of 2016 include those from transactions paying the higher rate of SDLT on additional properties. 124,000 “additional properties” – those liable for the 3% SDLT surcharge – have transacted so far in the 2017-18 financial year, bringing in £2,063m in SDLT receipts, of which £1,036m is attributed to the additional 3% element. It’s worth flagging here that this total will go down – potentially by quite a lot – as homeowners are able to claim the 3% back if they sell their main residence within three years of paying the higher rate; the £1,1036m is net of any refunds. 6,800 additional property refunds totalling £80m were paid in 2016-17, with a further £105m repaid in the financial year-to-date 2017-18.
Stamp duty receipts leap 23% as property values climb
October 31st 2017
7% more SDLT-liable residential property transactions went through in Q3 this year compared to the same period in the previous year, bringing in £2,625m in tax receipts, according to the latest batch of data released by the ONS. That’s a 23% jump in SDLT revenues for the Treasury’s coffers compared to Q3 2016 – and markedly up on anything pre-April 2016, when the Additional Rate was brought in… The most prominent uptick in the number of SDLT-liable resi transactions has been in the over £500k segment. The total in Q3 2017 was 18% higher than in Q3 2016. Financial year-to-date for 2017-18, the number of transactions is 13% higher than the same period in 2016-17. The increase in deal numbers gets less noticeable in lower-value segments: There were just 2% more liable sub-£250,000 transactions in Q3 2017 compared to 2016, and 11% more in the £250,000 – £500,000 bracket. Generally speaking, anything over £125,000 is liable for stamp duty, although “additional properties” (e.g. second homes or buy-to-let investments) under that threshold are still liable for the 3% additional rate, which has been in play since last Spring. This data set uses non-seasonally-adjusted numbers (which can make for lumpy quarterly changes). Q1 2016 still shows a remarkable peak – as buyers rushed to beat the introduction of the Additional Rate Stamp Duty in April. That means that financial year-to-date comparisons are a bit off this time around. Estimated SDLT receipts from residential transactions for the financial year-to-date for 2017-18, however, are 21% higher than the same period in 2016-17. The residential transactions receipts since Q2 of 2016 include those from transactions paying the higher rate of SDLT on additional properties. 124,000 “additional properties” – those liable for the 3% SDLT surcharge – have transacted so far in the 2017-18 financial year, bringing in £2,063m in SDLT receipts, of which £1,036m is attributed to the additional 3% element. It’s worth flagging here that this total will go down – potentially by quite a lot – as homeowners are able to claim the 3% back if they sell their main residence within three years of paying the higher rate; the £1,1036m is net of any refunds. 6,800 additional property refunds totalling £80m were paid in 2016-17, with a further £105m repaid in the financial year-to-date 2017-18.
SHARE POST