HMRC has released a report highlighting the effect of stamp duty relief for first-time buyers (FTBs) following its introduction in 2017.

The report estimates the efficacy of the 2017 First Time Buyers’ Relief in incentivising FTB property transactions in England and Northern Ireland and looks at the below criteria to evaluate the success of this relief:

– The impact on transaction volumes of FTBs; and,
– The impact on prices paid by FTBs

A relief from stamp duty for FTBs was announced in 2017 by the then Chancellor, Philip Hammond, as part of the Autumn Budget.

This meant that FTBs was fully exempt from paying Stamp Duty Land Tax (SDLT) on properties up to the value of £300,000.

Since its introduction, the relief has been subject to several changes; however, HMRC has revealed that in the £125,001 to £300,000 band, the SDLT relief was responsible for in an 11pc increase in purchases and an 18pc increase in the £300,001 to £500,000 band.

In 2022/23, UK government raised over £1,017bn in receipts.

This is equivalent to around 40pc of the size of the UK economy, which is the highest level since the 1980s.

Most receipts come from three main sources: income tax, National Insurance contributions (NICs) and value added tax (VAT).

Together they raised around £586bn in 2022/23. Coventry Building Society revealed that in 2022, more than £16bn of stamp duty was paid by homeowners in England.

This represents a 23pc increase on the previous 12 months.

Source: Property Notify