Home patrons pay virtually 20% extra in stamp obligation this 12 months – as Reeves rakes in additional from inheritance tax too

The amount of money the Treasury rakes in from both stamp duty land tax and inheritance tax is on the rise, official figures show.

Britons paid £13.7billion in stamp duty in just 11 months this year, new data from HMRC analysed by Coventry Building Society found.

Between January and November 2025, the amount of stamp duty buyers stumped up was 19 per cent higher than the £11.5billion paid over the same period in 2024. 

In November, buyers forked out £1.4billion for stamp duty, according to the data. 

On 1 April, the zero per cent stamp duty threshold dropped back to its previous level of £125,000, while the threshold for first-time buyers reverted to £300,000. 

The Office for Budget Responsibility’s Economic and Fiscal outlook showed tax on buying residential property in England and Northern Ireland is on track to balloon to £19.7billion by 2030-31. 

The property market stalled earlier this year as Britain awaited Chancellor Rachel Reeves’ Budget in November.

According to the OBR, residential housing transactions were ‘volatile’ this year, rising sharply in the first quarter and then falling sharply in the second, as transactions were brought forward to take advantage of the stamp duty holiday ending in April. 

The OBR expects property transaction taxes to raise £16billion in 2025-26, representing a 7.9 per cent increase from 2024-25. 

During the Budget, Reeves made no changes to the stamp duty regime. 

Reeves did, however, announced that properties worth more than £2million would face a council tax surcharge in an attack on property owners most likely to ensnare those in London and the South East. 

Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: ‘Stamp duty has long been the hidden sting in the tail of buying a home. 

‘The months of speculation ahead of the Autumn Budget added a lot of uncertainty, with buyers and sellers unsure if they should press ahead of wait for potential changes that never came. 

‘With no reforms announced, stamp duty now feels increasingly outdated and out of step with today’s housing market. 

‘We’re using thresholds which were introduced in 2014, but house prices have risen significantly since then. 

‘That disconnect means more buyers are being pulled into higher tax bands simply because the market has moved on.

‘When people are dragged into paying more tax by default rather than design, it’s clear the system isn’t up to date. 

‘At the very least there’s a growing case for the system to be revisited so it better reflects modern house prices. 

‘Without it, homebuyers will continue to be crippled by a tax which doesn’t make sense for today’s market.’

Ian Futcher, a financial planner at Quilter, said: ‘For anyone considering a move, these figures highlight the importance of viewing stamp duty as a central part of affordability rather than an afterthought’. 

Separate figures published by price comparison website Reallymoving in November showed the cost of moving home in England has risen by 27 per cent in the last year. 

People buying and selling property across England now have to fork out around £17,831 in upfront expenses, up from closer to £14,000 a year ago. 

According to Reallymoving’s analysis, average stamp duty costs for buyers, excluding first-time buyers reached £9,750 in England this year, and were the main driver in the upturn in moving costs. 

Inheritance tax receipts rising

Inheritance tax receipts reached £5.78billion between April and November 2025, figures from HM Revenue & Customs show.   

The figure represents an increase of £83million, or 1 per cent, compared to the same period a year ago, setting the scene for yet another record haul for the Treasury. 

According to the most recent OBR forecast from November’s Budget, inheritance tax receipts are forecast to raise £8.7billion in 2025-26, marking a 4.5 per cent increase from last year.

Inheritance tax receipts are expected to continue to rise over the remainder of the decade, driven by rising house and equity prices alongside the impact of the policies announced in the 2024 Budget last autumn, and are expected to reach £14.5billion in 2030-31.

Stephen Lowe, a director at retirement specialist Just Group, said: ‘Inheritance tax continues to be a quiet but powerful revenue engine for the Treasury, with another bumper year of receipts on the cards as rising asset prices, frozen thresholds and tighter exemptions do the heavy lifting.

‘With record-breaking takings rolling in and last year’s Budget reforms still feeding through, Inheritance Tax is securing its spot as one of the Treasury’s most dependable money-spinners.

‘In a changeable fiscal environment, it is important that anyone who is uncertain or concerned that their estate may be subject to IHT gets ahead of the game. An up-to-date valuation of their estate, especially an assessment of their property wealth, will be crucial to future planning.

‘Estate planning is complex and it’s not made any easier when the rules are shifting.’

Inheritance tax is charged at 40 per cent on assets above the inheritance tax threshold when people die and has long been the subject of criticism – including a damning report from the Office of Tax Simplification. 

Only the richest 4 per cent of families pay it – though that is expected to rise to 8 per cent when pensions start being counted towards the levy.  

The property boom over recent decades plus frozen thresholds are dragging many more grieving families into the inheritance tax net, and the Treasury is raking in ever bigger sums as a result.

The pending inclusion of pensions in the calculations from 2027 will also impact more families.