There was a 53% quarterly jump in the tax paid towards the stamp duty surcharge on additional dwellings after the government raised this from 3% to 5%.
Figures from HMRC showed that, in Q4 2024, after the higher rates for additional dwellings (HRAD) were introduced, the 5% surcharge generated £700m in receipts, up from £457m in Q3.
The tax surcharge on these additional property purchases, such as second homes and buy-to-let (BTL) properties, was also 50% higher than the same period in 2023.
HMRC said after the surcharge was changed in the Budget, residential receipts from HRAD rose overall, and a larger share of all stamp duty tax intake was from these transactions.
HRAD transactions generated £1.49bn in receipts in Q4, 28% up on the year before and 31% higher than in Q3.
The share of receipts from HRAD transactions rose from 44% to 50% quarter-to-quarter. Annually, this was a one percentage point increase.
Five ways we’ve improved our Premier service
Sponsored by Halifax Intermediaries
Although there was a 3% fall in HRAD transactions during the period, 57,100 were liable to pay HRAD in Q4, higher than the 50,700 transactions liable during the same period a year earlier.
In Q4, HRAD transactions accounted for 37% of all residential transactions liable to pay stamp duty.
The 2% surcharge for residential property purchases by non-residents was charged on 5,100 transactions in Q4, a 13% uptick on the previous quarter. This generated £58m in receipts compared to £47m in Q3, a 23% rise.
Increase in first-time buyers claiming relief
There was a 10% quarterly rise in first-time buyers claiming relief from the stamp duty tax in Q4, going from 37,600 to 41,500. When compared to a year earlier, this represented a 34% increase.
The amount relieved also rose by 10%, totalling £202m in Q4, and compared to 2023 this was 38% higher.
Stamp duty receipts and transactions rise
In total, stamp duty receipts from residential purchases were 16% higher than the previous quarter, at £3.01bn, and 27% higher than the year before.
Residential property transactions increased by 9% to 284,200 compared to Q3, and was a fifth higher than the last quarter of 2023.
