Stamp duty revenue rises by 40 per cent
Homebuyers paid out a record-breaking £6.4 billion in stamp duty in 2006/07 - a rise of 40 per cent, or £1.6 billion, on the previous year.According to figures from Halifax, in the last five years the annual revenue from residential stamp duty has more than doubled and £5.1 billion of this year's total came from tax on homes worth more than £250,000 - more than three times the £1.6 billion paid five years agoStamp duty bands have not changed since 1997, despite a 191 per cent increase in house prices over the period, meaning that more houses than ever are in higher bands and that homebuyers are paying proportionally far more than they were ten years ago.Commenting on the figures, Martin Ellis, Halifax chief economist, said:"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. "We call on the government to raise all the stamp duty thresholds to reflect the increase in house prices over the past decade and to commit to doing so in the future."If stamp duty thresholds had been tied to the growth of property prices, homes would have to be worth about £1.46 million before buyers paid the highest rate of stamp duty and the three per cent band would now apply to homes worth over £739,000.
Share this..
Related stories
Gordon Brown considering emergency tax cuts
As we commented upon yesterday there is growing speculation that Gordon Brown is considering up to £15 billion in tax cuts in the UK at a time when the economy appears to be plunging from disaster to disaster. However, while the speculation grows about possible tax cuts there is growing concern about how this move would be funded and the ultimate aim of such a program.
The Tory par...
UK GDP revised upwards
Yet again figures regarding the UK economy have been revised at a later date with GDP figures for the period between April and June revised from a fall of 0.8% to a fall of 0.7%. This takes the annual decline up from 5.6% to 5.5% in the second quarter although it is still the worst performance by the UK economy since 1995. Those who follow the UK GDP figures will be grateful there has been no down...
Read MoreWas Alistair Darling overruled by Gordon Brown?
There is speculation in the press today that Alistair Darling was overruled by Gordon Brown in relation to his plans to implement a much tougher assault on the UK national debt and the UK budget deficit. It is believed that Alistair Darling was looking towards a potential increase in basic VAT as well as a number of spending cuts, which would both have eaten into the current budget deficit. Howeve...
Read MoreAre we approaching the darkest hours before the dawn?
Over the last few weeks we have seen comments regarding the UK economy issued by various parties and various experts, each of which seems to have a different understanding and different appreciation of the current environment. Many believe the UK economy has turned a corner and is on the way to recovery while others believe it is stagnating and set for a fall in the short to medium term.
Vouchers and bonus points
More and more online businesses are now offering significant promotions, discounts, vouchers and bonus points to customers who frequent their websites. However, even though the vast majority of people in the UK are struggling to make ends meet it seems that many of us are happy to walk away from significant discounts and promotions because "they take too long". People seem to forget that the Inter...
Read More