If you’re worried the stamp duty holiday is denying the Treasury of much-needed income, think again.
Stamp duty receipts soared to £1,196 million last month, making March the fifth biggest month for Treasury income from this tax since it was introduced in its current form in 2003.
Despite the stamp duty holiday which started in July, receipts last month were 22 per cent higher than March 2020, the latest HMRC tax figures show.
In total, HMRC received £8.7 billion in stamp duty in the 2020-21 tax year, despite the holiday - confirming that the frenzy around the sales market reported by agents has been good news for the government’s coffers.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, says: “These numbers are surprising but anyone in the industry will know how frenetic it has been over the past few months.
“The original March deadline for the holiday would have driven a lot of people to get their house moves through last month. That has clearly boosted activity across the market as these tax receipts indicate higher value homes, second homes and rental properties have been exchanging hands.
“As the holiday has since been extended, we can probably expect to see this busy period continue for a while.”