UK Stamp Duty and Council Tax Rates Now Highest in the Advanced World
K E Y T A K E A W A Y S :
UK property taxes are the highest among advanced economies, according to new data.
Tax hikes hit households and businesses starting in April as the new tax year begins.
Average Band D council tax rises by £109, reaching £2,280 annually.
Stamp duty relief shrinks next month—first-time buyers pay tax on properties over £300,000 (England & Northern Ireland).
UK homeowners paid £16.4 billion in stamp duty in 2023, the highest figure since records began in 1946. The surge follows tax cuts in 2022, which temporarily boosted property transactions.
Why Stamp Duty Rose
The government slashed stamp duty rates in September 2022 to stimulate the housing market. Buyers rushed to complete purchases before the cuts expired in April 2025. This deadline drove a 41% increase in transactions compared to pre-pandemic levels.
Current Stamp Duty Rules
First-time buyers pay no stamp duty on properties up to £425,000. The threshold for other buyers stands at £250,000. Rates then climb progressively, reaching 12% for properties over £1.5 million.
Regional Differences
London and the southeast contributed 60% of the total stamp duty revenue. The average London buyer paid £24,600, while those in the North East paid just £2,700.
Future Outlook
Experts predict a market slowdown after the April 2025 deadline. Transaction volumes may drop as buyers lose the incentive to act quickly.
For now, stamp duty remains a major revenue source – and a significant cost for UK homeowners.
Source: Independent.co.uk
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