Property owners hope for stamp duty changes

21 March 2006
Property owners will be among those hoping to see changes to the way stamp duty is imposed in this week's Budget.

Under the current arrangements, anyone selling a home worth over £250,000 has to pay three per cent of the sale price to the Treasury.

A home that sells for as little as £1 underneath that threshold will only incur a levy of one per cent.

David Stubbs of the Royal Institute of Chartered Surveyors (RICS) is one of the many critics of the current system.

"There is no reason for stamp duty as it is," he said. "The slab system means that if you move only one pound from 249,000 to 250,000 you could be slapped with a huge bill.

"It should be changed to a marginal tax in line with other taxes."

The chancellor increased the stamp duty threshold in his 2005 Budget, but critics note that even that increase has failed to put the tax in line with house price inflation.

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