Chancellor Considers Halting Stamp Duty
In a bid to help people through difficult economic times, and also in an attempt to boost the ailing property market, Chancellor Alistair Darling is looking at a range of measures, one of which is scrapping stamp duty for a period.
This Government has been criticised for its unwillingness to bend on stamp duty, a tax that has earned the treasury billions over the last eleven years and, thanks to the rising price of property, has captured more and more people in that time. It has been blamed in part for the slowdown in the property market – especially for first time buyers – but other reasons have taken the headlines in recent months.
This week Chancellor Alistair Darling has said that difficult times are ahead for Britons, and there is not likely to be an early end to the economic slowdown. The good news is that he has said that he is looking at a number of options which will help people manage the pressure on home budgets, one of which is the possible suspension of stamp duty payable on house purchases.
The temporary suspension of stamp duty is under consideration for a pre-Budget report being brought forward to late October, though no decisions have yet been made.
Stamp duty is a particularly unpopular tax, adding extra costs to the purchase of homes above £125,000. The rate is 1% to £250,000, then 3% to £500,000 and 4% above that. Highly frustrating is the fact that the percentage is charged on the whole sale amount for the property.
At a time when first-time buyers are suffering from rising mortgage costs and higher deposits demands, the addition of stamp duty for the property of their choice can often mean the end of their dream.
When he was chancellor Gordon Brown raised £31.5bn over ten years from the duty.
