UK stamp duty receipts rise as inheritance tax climbs, data shows

UK stamp duty receipts rose by about 19% in the first 11 months of 2025, totaling around £13.7 billion, according to HM Revenue & Customs data analyzed by Coventry Building Society. The monthly tally for November alone reached about £1.4 billion, signaling that the tax on property transactions remains a substantial contributor to the Treasury despite volatility in the housing market. The data align with a broader pattern of rising tax yields from property and estates as prices remain elevated and thresholds have remained largely frozen for years.

Threshold changes that came into effect on 1 April kept the zero percent stamp duty rate at the previous level of £125,000, while the first-time buyers relief reverted to £300,000. The Office for Budget Responsibility has forecast that residential property transaction taxes in England and Northern Ireland could rise to about £19.7 billion by 2030-31. The OBR described housing transactions as volatile this year, with activity bouncing earlier in the year then slowing as buyers pulled deals forward to beat anticipated changes that ended when the stamp duty holiday expired in April. The forecast for 2025-26 projects property transaction taxes at about £16 billion, a near 8% increase from 2024-25. In the Autumn Budget, Chancellor Rachel Reeves kept stamp duty unchanged but announced a council tax surcharge on properties valued above £2 million, a measure aimed at higher-value homes in London and the South East.

Industry observers note that stamp duty has long been a friction point in home buying, with thresholds that were set in 2014 now out of step with today’s price levels. Jonathan Stinton, head of mortgage relations at Coventry Building Society, said the disconnect means more buyers are drawn into higher tax bands simply because the market has moved on. He added that without reforms, stamp duty feels outdated and can be a hurdle for many buyers, underscoring a broader call for the regime to better reflect current house prices.

Ian Futcher, a financial planner at Quilter, said the figures underscore the importance of treating stamp duty as a central part of affordability rather than an afterthought for anyone considering a move. The data also come amid evidence from price comparison site Reallymoving that moving costs in November rose sharply, with upfront expenses for buyers and sellers in England up around a quarter year on year. Their analysis put average stamp duty costs for buyers who are not first-time buyers at about £9,750 in England this year, while overall moving costs approached £17,831 on average, contributing to higher upfront hurdles for households.

Inheritance tax receipts remained on an upward path as well. HMRC data show receipts of £5.78 billion from April to November 2025, up slightly from the year earlier. The Office for Budget Responsibility projects inheritance tax receipts to reach about £8.7 billion in 2025-26 and to rise further, potentially to around £14.5 billion by 2030-31, driven by higher asset values and existing rules that keep thresholds frozen while exemptions widen only slowly. Stephen Lowe, a director at retirement specialist Just Group, characterized inheritance tax as a quiet but powerful revenue engine for the Treasury, with rising asset prices and steady thresholds pushing receipts higher. He cautioned that uncertainty about planning and changing rules makes timely estate valuation and planning increasingly important.

Inheritance tax is charged at 40 percent on assets above the threshold when a person dies. Critics have long called for simplification, noting that only a small share of families actually pay the levy, though that share is expected to grow as pensions and other assets become part of the calculation in coming years. The government has signaled that pensions could be included in IHT calculations from 2027, a change that would further affect families with significant pension and property wealth. The overall trend suggests that, even as the economy grapples with higher mortgage costs and shifting policy priorities, the Treasury expects to rely on both stamp duty and inheritance tax as major revenue sources for the foreseeable future.

For buyers and sellers alike, the combination of higher upfront costs and frozen thresholds continues to shape decisions in England and Northern Ireland. Analysts say policy reform remains a live topic for future budgets, given that the property market has moved on from the framework that governed stamp duty for much of the past decade. As the Treasury looks to balance revenue with market vitality, observers stress the need for clarity and predictability in tax regimes that touch nearly every home transaction.