Stamp duty shows record increase
October 2, 2007 by admin
Filed under News, News-Mortgages
The total value of stamp duty generated by the sale of residential property rose by a record level during the year 2006 to 2007, a new report has said.
According to Halifax, HMRC figures reveal that stamp duty revenue rose by 40 per cent over the year to hit £6.4 billion.
The bank also claimed that the last five years have seen a 140 per cent increase in this revenue, up from £2.7 billion in 2001 to 2002.
It is the south of England that has contributed most to stamp duty revenue, the report said, accounting for 73 per cent of the total.
In addition, the higher bands for the tax – three per cent for properties over £250,000 and four per cent for those over £500,000 – contributed 79 per cent of revenue.
“The revenue generated from stamp duty on property purchases has soared as governments of both political parties have failed to link thresholds to house price inflation,” Martin Ellis, chief economist at Halifax, commented.
Addressing the Conservative Party conference in Blackpool the shadow chancellor George Osbourne pledged to increase the stamp duty threshold if they are elected, meaning only properties worth £250,000 or more would qualify.
Currently, homes with a value of between £125,000 and £250,000 are subject to a one per cent stamp duty levy.
