Tax receipts for stamp duty and annual tax enveloped dwellings fell by £700m to £1.2bn in April, compared to a year ago, data from HMRC shows.
The majority of this shortfall, over £500m, comes from lower stamp duty takings.
“This is driven by lower transactions in April 2023 but also by the lower rate of taxation and more generous relief for first-time buyers that were introduced in September 2022,” says the government tax body.
In former Chancellor Kwasi Kwarteng’s September tax-cutting mini-Budget, the zero percent stamp duty tax band was permanently raised to £250,000 from £125,000.
Also, the zero percent threshold for FTBs was raised to £425,000 from £300,000.
However, in current Chancellor Jeremy Hunt’s November Autumn Statement he said these reductions will only remain in place until March 2025.
Overall, HMRC says its receipts for April came in at £70.9bn, up £1.8bn on a year earlier, with the biggest contributions coming from income tax, capital gains and national insurance.
