Investment Property News - Bueno Investments Limited

The Government is set to collect around £7.3bn in stamp duty during 2007-08, a new report claims.

Britain’s biggest mortgage lender Halifax said the figure, a 14% rise on the record £6.4bn gathered in 2006-07, shows the system must be reformed.

It added that if thresholds had increased in line with house price inflation since July 1997, the tax would not kick in until a home was worth £191,000.

Currently investors pay 1% of a property’s value on homes worth between £125,000 and £250,000, 3% on homes worth between £250,000 and £500,000, and 4% for properties worth more than £500,000.

Martin Ellis, chief economist at Halifax, said: “The higher stamp duty thresholds have not been altered since their introduction a decade ago.

“We call on the Government to raise all stamp duty thresholds to account for the rise in house prices over the past decade and to index for house price inflation in the future.”

But a Treasury spokesman said: “It’s important to keep in mind that 80% of homebuyers pay either 1% or nothing on stamp duty.”

He added that 75% of the cash from stamp duty is generated by the 20% of homebuyers who pay either the 3% or 4% rate.

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.halifax.co.uk/home/home.asp (Halifax)