2020
The UK’s HM Revenue and Customs (HMRC) has recently reported a 32% decrease in stamp duty receipts for the second quarter of 2020. This is a stark reminder of the economic impact of the COVID-19 pandemic, as the UK’s housing market has been hit hard by the lockdown restrictions.
Stamp duty is a tax levied on property purchases in the UK, and the HMRC’s report shows that receipts for the period April to June 2020 were £2.3 billion, compared to £3.4 billion in the same period in 2019. This is a decrease of 32%, and is the lowest level of stamp duty receipts since the third quarter of 2013.
The decrease in stamp duty receipts is a direct result of the lockdown restrictions imposed by the UK government in response to the COVID-19 pandemic. The restrictions have had a significant impact on the UK’s housing market, with many potential buyers and sellers unable to complete transactions due to the restrictions. This has resulted in a decrease in house sales, and therefore a decrease in stamp duty receipts.
The decrease in stamp duty receipts is likely to have a significant impact on the UK economy. Stamp duty is an important source of revenue for the government, and the decrease in receipts could lead to a reduction in public spending. This could have a knock-on effect on other areas of the economy, such as employment and investment.
The decrease in stamp duty receipts is also likely to have an impact on the UK’s housing market. With fewer people able to buy and sell property, house prices are likely to remain low for some time. This could make it difficult for people to move home, as they may not be able to afford the stamp duty costs associated with buying a new property.
Overall, the HMRC’s report of a 32% decrease in stamp duty receipts for Q2 2020 is a stark reminder of the economic impact of the COVID-19 pandemic. The decrease in receipts is likely to have a significant impact on the UK economy, as well as on the UK’s housing market. It is therefore essential that the government takes steps to support both buyers and sellers during this difficult period, in order to ensure that the housing market can recover as quickly as possible.