The Council of Mortgage Lenders is calling on chancellor Gordon Brown to change the stamp duty regim...
The Council of Mortgage Lenders is calling on chancellor Gordon Brown to change the stamp duty regime, which it says is contributing to the problems facing people trying to get on the property ladder.
The council says that stamp duty on property purchases has brought a near 600% increase in revenues to the government since the 1993-4 fiscal year.
In addition to a stepped or "graduated" stamp duty systems, the CML also says that the twin issue of IHT and income support for mortgage interest (ISMI) need to be revisited in light of the steep rise in property prices.
Instead, it suggests rebasing IHT using the house price index, which would result in an IHT allowance of more than £355,000 and an ISMI threshold of more than £164,000.
Furthermore, the CML says it would support moves to create more low-cost housing, but adds that the current system of stamp duty does not help because it creates "price bunching" just below each threshold.
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