Stamp duty may be suspended for all buyers

05 August 2008

Treasury works on plan to help struggling families

According to claims made yesterday, the Prime Minister, Gordon Brown is contemplating suspending stamp duty to try and revive the housing market.

The idea is currently being worked on by the Treasury and would form part of a package aimed at helping families struggling with money.

The story was reported in The Sun newspaper after it received details which suggested that all home buyers would not have to pay the tax.

Over the past ten years, stamp duty has provided the Treasury with £31.5bn.

Currently, everyone who buys a property has to pay stamp duty at varying levels depending on how much the property cost. If the property is worth under £125,000, no stamp duty is paid, if it is worth £125,001 to £250,000 1% is paid, 3% is paid on properties costing between £250,001 and £500,000 and 4% is paid is the final price is £500,001 or more.

Official findings will be reported to the Prime Minister on his return from the Olympic Games closing ceremony at the end of this month.

In an interview with The Times in July, the Chancellor hinted that the way stamp duty is charged may be reformed.

He said: “Stamp duty is always a factor when people buy and sell houses but we need to make sure that we support the financial system too.”