Stamp Duty revenues are due to grow 13% in the 2007/08 tax year as the value of property has soared.
Propertyfinder.com says this confirms the need for the Government to review the stamp duty system to ease the financial difficulties faced by homebuyers.
HM-Treasury released its preliminary figures for the 2007/08 tax year today and the amount raised from property is up substantially.
Nicholas Leeming, director of propertyfinder.com, says: “The Treasury is making a mint from the housing market. Today’s preliminary figures from HMRC show that stamp duty this tax year is forecast to be up a massive 13% over last year, despite a cooler housing market.”
The figures also reveal inheritance tax revenue has increased by 10%, which propertyfinder.com says is largely due to rising property prices.
Leeming believes the rising costs of borrowing, coupled with increasing tax liabilities for the majority of homes, is making life very difficult for potential homebuyers.
“The current system of stamp duty bands causes huge tax liabilities, even on modest homes. Either we need to see marginal bands introduced, or if the government is to retain the existing system, the bands must represent the reality of actual house prices,” he adds.
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