You are here: Home - Uncategorized -

Higher house prices boost stamp duty take

0
Written by:
05/03/2007

Almost a fifth of homebuyers have to pay stamp duty at a higher-than-standard rate due to rising property prices, according to a report from mortgage lender Halifax.

As people continue to make property their main UK investment, the proportion of homebuyers paying 3% stamp duty had gone up from 6% in 2001 to 19% in 2006.

Stamp duty is levied at 3% when a property is purchased for between £250,000 and £500,000. London and the South East accounts for nearly two-thirds of the homes attracting stamp duty at this rate.

The Government raked in around £4.6bn in stamp duty in 2005/06 – an increase of 114% on the 2000/01 figures, which shows how the UK investment in property has soared.

Tim Crawford, group economist at Halifax, said: “Bracket creep has been a key factor as a growing percentage of property sales now occur above the higher stamp duty thresholds of £250,000 and £500,000, which have not changed since their introduction in 1997.

“Nearly a quarter of postcode districts in England and Wales now have an average price above the 3% stamp duty threshold of £250,000, compared to only one in 20 districts five years ago.”

Crawford called on the chancellor to increase the level of stamp duty in line with the rise in house prices in the Budget on 21st March in order to ease the pressure as people make their UK investment in property.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Overpaid tax waste ‘tops £8bn a year’

Around £8bn will be overpaid in tax this year, according to research compiled by lobby group IFA Promotion (IFAP) as part...

Close