2019
The UK’s HM Revenue and Customs (HMRC) recently released their quarterly report for the fourth quarter of 2019, which showed an increase in stamp duty transactions and a decrease in receipts. This is a significant change from the previous quarter, when receipts were up and transactions were down.
Stamp duty is a tax that is paid when buying or transferring property, land, or shares. It is one of the largest sources of revenue for the UK government, and the amount of stamp duty collected can be an indicator of the health of the housing market.
The HMRC report showed that there were 1.7 million stamp duty transactions in the fourth quarter of 2019, up from 1.6 million in the third quarter. The total amount of stamp duty collected, however, decreased from £3.6 billion to £3.4 billion. This suggests that the average amount paid per transaction decreased, likely due to an increase in first-time buyers and people taking advantage of lower house prices.
The decrease in stamp duty receipts could be a sign that the UK housing market is slowing down. This could be due to Brexit uncertainty, as well as other economic factors such as rising unemployment and low wage growth. The decrease could also be a sign that the UK government’s Help to Buy scheme is having an effect, as it has been designed to help first-time buyers get on the property ladder.
It is too early to tell what impact this decrease in stamp duty receipts will have on the UK economy, but it is clear that it is something that should be monitored closely. If the trend continues, it could indicate that the UK housing market is slowing down, which could have a negative effect on the overall economy.
Overall, the HMRC report shows that there was an increase in stamp duty transactions and a decrease in receipts in the fourth quarter of 2019. This could be a sign that the UK housing market is slowing down, and it is something that should be monitored closely to see if the trend continues.