Housebuyers spending billions on IHT and stamp duty

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Housebuyers spending billions on IHT and stamp duty

Tue 5th Dec 2006

With stamp duty levels currently failing to match the rise in property prices in the UK, homebuyers are facing a collective bill of billions of pounds in inheritance tax (IHT) and stamp duty to the Treasury, says a new report.

According to the Halifax, the government raked in over £3.5 billion in the last financial year - a rise of around £ 2.3 billion since 2001 - from sales of houses worth over £250,000 and due to soaring house prices, around 1.5 million families are being left with IHT bills.

It was discovered that of 645 constituencies, 97 have an average property price in excess of £250,000 which is the amount that stamp duty's higher taxation level is introduced.

Executive director of Nationwide Stuart Bernau, remarked: "Stamp duty limits should be linked to house price inflation to ensure the burden of stamp duty keeps pace with rising house prices".

Halifax has urged the Treasury to reconsider the IHT threshold and makes the recommendation that it rises to £430,000 so that allowances for inflation over the last ten years can be made.

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