The stamp duty holiday has led to a significant fall in the number of people paying this tax over the last quarter, according to the latest HMRC figures. HMRC figures shows the number of property transactions subject to stamp duty land tax (SDLT) were 10% lower in Q4 2021, when compared to the previous three months (Q3 2021). These transactions were also 13% lower than Q4 2020. This SDLT holiday was phased out between 30 June and 30 September last year. HMRC says this caused a substantial rise in the number of transactions being completed earlier in the year, with home buyers keen to avoid paying additional stamp tax charges. Since this tax break started to be phased out, HMRC says there has been a fall in transaction over the last two quarters. Residential property transaction in Q4 2021 were 12% lower than Q3 in 2021 and 15% lower than in Q4 2020. Over the same period non-residential property transactions were 10% higher than both Q3 2021 and Q4 2020.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of February 2022 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.