Pre-Budget Report leaves stamp duty levels static

07-Dec-2006

Yesterday's Pre-Budget Report by the chancellor has offered no respite for first time buyers, as the current stamp duty threshold remains unchanged.

Despite first time buyers being disproportionately affected by the cost of stamp duty - the average property in the UK costs around £70,000 more than the £125,000 threshold - there are currently no plans to increase the minimum purchase price.

"Stamp duty is clearly becoming the chancellor's favourite stealth tax," said Matthew Wyles, development director at Portman Building Society.

"This levy is particularly unfair because its burden falls disproportionately upon the shoulders of those least able to afford it," he added.

Under the current allowance structure, all houses between £125,001 and £250,000 are obliged to pay one per cent of the property's value in tax, with the amount rising to three per cent for houses valued between £250,001 and £500,000.

If you want to influence government policies for first time buyers, sign the FirstRungNow first time buyer petition.

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