This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7018253.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK personal wealth at £6 trillion | UK personal wealth at £6 trillion |
| (about 11 hours later) | |
| The wealth of UK households has been given a dramatic boost by rising house prices, says the Halifax bank. | The wealth of UK households has been given a dramatic boost by rising house prices, says the Halifax bank. |
| It calculates that total net personal wealth more than doubled between 1996 and 2006, to £6.336 trillion. | It calculates that total net personal wealth more than doubled between 1996 and 2006, to £6.336 trillion. |
| More than half that rise is due to higher house prices which pushed up the value of peoples' homes, after mortgage debt, to £2.7 trillion. | |
| While house prices rose by 216% in that time, the lender says mortgage debt rose more slowly, by just 163%. | While house prices rose by 216% in that time, the lender says mortgage debt rose more slowly, by just 163%. |
| "The financial position of households in total has strengthened substantially over the past decade," said Martin Ellis, the Halifax's chief economist. | "The financial position of households in total has strengthened substantially over the past decade," said Martin Ellis, the Halifax's chief economist. |
| "Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace." | "Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace." |
| Houses, estimates the Halifax, now make up 43% of the UK population's total personal wealth, rather than the 26% they accounted for in 1996. | Houses, estimates the Halifax, now make up 43% of the UK population's total personal wealth, rather than the 26% they accounted for in 1996. |
| Even so, other assets have become more valuable too, though not quite as fast. | Even so, other assets have become more valuable too, though not quite as fast. |
| Cash savings doubled in the decade from 1996, and together with other things such as shares and pensions are now valued at a net £3.634 trillion. | Cash savings doubled in the decade from 1996, and together with other things such as shares and pensions are now valued at a net £3.634 trillion. |
| These non-property financial assets now account for 57% of all personal wealth. | These non-property financial assets now account for 57% of all personal wealth. |
| Stamp duty | Stamp duty |
| Other figures, published by HM Revenue and Customs, show how rising house prices have provided a tax bonanza for the government. | Other figures, published by HM Revenue and Customs, show how rising house prices have provided a tax bonanza for the government. |
| STAMP DUTY RATES Below £125,000 zero rateAbove £125,000 1%Above £250,000 3%Above £500,000 4% | STAMP DUTY RATES Below £125,000 zero rateAbove £125,000 1%Above £250,000 3%Above £500,000 4% |
| Stamp duty on residential property sales in the UK brought in £6.44bn for the chancellor in the last financial year, 2006-07. | Stamp duty on residential property sales in the UK brought in £6.44bn for the chancellor in the last financial year, 2006-07. |
| That was more than double the level seen five years earlier in 2001-02, when this tax take stood at £2.69bn. | That was more than double the level seen five years earlier in 2001-02, when this tax take stood at £2.69bn. |
| The basic rate of stamp duty is 1% on sales worth more than £125,000. | The basic rate of stamp duty is 1% on sales worth more than £125,000. |
| But higher rates were introduced in 1997, taxing sales above £250,000 at 3%, and those above £500,000 at 4%. | But higher rates were introduced in 1997, taxing sales above £250,000 at 3%, and those above £500,000 at 4%. |
| These rates have not changed since then, so with a quarter of all house sales now being valued at £250,000 or above, the government's take from stamp duty is now booming. | These rates have not changed since then, so with a quarter of all house sales now being valued at £250,000 or above, the government's take from stamp duty is now booming. |
| Despite a hysterical campaign against inheritance tax in some quarters of the media, HMRC figures show it is not as onerous. | Despite a hysterical campaign against inheritance tax in some quarters of the media, HMRC figures show it is not as onerous. |
| In 2006-07 it brought the government £3.5bn, up a relatively modest 50% during the previous five years. | In 2006-07 it brought the government £3.5bn, up a relatively modest 50% during the previous five years. |