11 December 2025
If you are covering the annual stamp duty statistics, please see the following comment Ian Futcher, financial planner at Quilter:
Stamp duty land tax
“The latest stamp duty figures show a market that has remained relatively resilient in terms of transaction numbers, but one where the tax burden on buyers continues to grow. Residential SDLT receipts rose by 21% over the year, despite house prices being broadly flat. Therefore this isn’t a story of booming values but of a system that has become increasingly punitive, with higher surcharges and tighter reliefs pushing up the cost of moving.
“First-time buyers illustrate this tension most clearly. Claims for First Time Buyers’ Relief jumped by 37% as many rushed to complete before the thresholds tightened in April, securing an average tax saving of around £5,000. However, mortgage rates have since fallen from the levels seen in late 2024 and early 2025. For those who made a knee-jerk decision to purchase under the old rules, the upfront tax saving may now be overshadowed by the fact they locked into borrowing when rates were materially higher. In some cases, the additional annual interest cost could quickly erode, or even exceed, the saving they secured, meaning the timing of the purchase may not ultimately have delivered the benefit they hoped for.
“The pressure on landlords and second-home buyers has intensified too. Receipts from the higher rates on additional dwellings climbed by almost a fifth after the surcharge increased from 3% to 5%, taking the total to more than £5.4 billion. For many investors, the tax landscape is now so onerous that the financial rationale for purchasing a property has weakened considerably, contributing to sluggish turnover in parts of the country.
“For anyone considering a move, these figures highlight the importance of viewing stamp duty as a central part of affordability rather than an afterthought. With surcharges higher, reliefs tighter and mortgage rates still elevated by historic standards, buyers need a clear understanding of both the upfront tax costs and the longer-term mortgage implications before committing. The housing market has held up better than some expected, but it has done so in spite of the tax environment, not because of it, and thoughtful planning has never been more important.”
Stamp duty on shares
“The data shows that stamp duty on shares continues to be a good source of tax revenue for the treasury. Stamp duty on shares and other liable securities has increased by 35% in the year, from £3.2bn to £4.3bn – highlighting just why the government will be reluctant to abolish the tax altogether. However, stamp duty on shares is holding back investment, from both retail investors and institutional. The UK has an outdated system and is thus putting itself at a competitive disadvantage. If we are to grow an investment culture in the UK and promote the benefits of investing, we need to ensure any drags or barriers to that are removed.
“The government did announce some relaxation on stamp duty on shares but for new listings and even then only for the first three years. Investors think in longer periods than three years and thus it is unlikely this reform will make a significant difference in either boosting capital markets or bringing in new investment. A more effective solution would have seen an abolition completely, giving institutional and overseas investors the confidence to back British investments while also putting a marker in the sand for retail investors that the government will not stand in the way of more people investing for their futures.”
