Stamp duty revenue up 30%

07-Sep-2006

Despite a decision to increase the threshold in March 2006, first time buyers and other British homeowners now pay an average £3,735 in stamp duty when purchasing a home, according to data from Portman Building Society.

The figure represents a year-on-year increase of 30 per cent in government revenue - and a gain of £229 million on the previous quarter, before the threshold change was made.

Rachel le Broq, spokesperson for the Building Societies Association (BSA), said: "Whilst any increase in the stamp duty threshold will alleviate pressure on some first time buyers, the BSA feels it is time for a complete overhaul of this tax.

"The indexation of the thresholds should be based on house price inflation. This would reduce the problem where home buyers are placed in higher tax brackets because of the rising price of the house they were buying."

Properties priced over £500,000 are subject to four per cent tax.

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