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| House price boom 'fuels tax take' | House price boom 'fuels tax take' |
| (10 minutes later) | |
| Rising property prices mean that nearly a fifth of homebuyers have to pay stamp duty at a higher-than-standard rate, a report has said. | |
| Halifax bank said the percentage of homebuyers paying 3% stamp duty had risen from 6% in 2001 to 19% in 2006. | Halifax bank said the percentage of homebuyers paying 3% stamp duty had risen from 6% in 2001 to 19% in 2006. |
| Stamp duty at 3% kicks in when a property is bought for between £250,000 and £500,000. | Stamp duty at 3% kicks in when a property is bought for between £250,000 and £500,000. |
| London and the South East account for nearly two-thirds of the homes attracting stamp duty at 3%. | London and the South East account for nearly two-thirds of the homes attracting stamp duty at 3%. |
| In some London boroughs, such as Kensington and Chelsea, all but a tiny percentage of properties sell for more than the £250.000 mark. | In some London boroughs, such as Kensington and Chelsea, all but a tiny percentage of properties sell for more than the £250.000 mark. |
| Revenue boost | Revenue boost |
| 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% |
| The government collected about £4.6m in stamp duty in the 2005/2006 tax year - an increase of 114% on the 2000/2001 figure. | The government collected about £4.6m in stamp duty in the 2005/2006 tax year - an increase of 114% on the 2000/2001 figure. |
| The Halifax said government revenues were set to increase further as house prices increased far more rapidly than stamp duty thresholds. | The Halifax said government revenues were set to increase further as house prices increased far more rapidly than stamp duty thresholds. |
| "Bracket creep has been a key factor as a growing percentage of property sales now occur above the higher stamp duty thresholds of £250,000 and £500,000, which have not been changed since their introduction in 1997," Tim Crawford, group economist at Halifax, said. | "Bracket creep has been a key factor as a growing percentage of property sales now occur above the higher stamp duty thresholds of £250,000 and £500,000, which have not been changed since their introduction in 1997," Tim Crawford, group economist at Halifax, said. |
| "Nearly a quarter of postcode districts in England and Wales now have an average price above the 3% stamp duty threshold of £250,000, compared to only one in 20 districts five years ago," he added. | "Nearly a quarter of postcode districts in England and Wales now have an average price above the 3% stamp duty threshold of £250,000, compared to only one in 20 districts five years ago," he added. |
| The Halifax called on the chancellor to increase the level of stamp duty in line with the rise in house prices in the Budget on 21 March. | The Halifax called on the chancellor to increase the level of stamp duty in line with the rise in house prices in the Budget on 21 March. |
| In response, the Treasury said that five out of six homebuyers either paid no stamp duty or just 1%. | In response, the Treasury said that five out of six homebuyers either paid no stamp duty or just 1%. |