BUDGET 2008: Stamp Duty

Disappointingly, there were once again no great changes to the Stamp Duty Land Tax.

The last change to this tax was in 2006 when the 1% threshold was increased from £120,000 to £125,000, but there has been no change to the other bands (at £250,000 and £500,000) since 2000.

Thanks to the housing boom, the Government has seen nearly a ten-fold increase in its revenue from stamp duty over the last decade. In 200/07, it received £6.4 billion according to the Council of Mortgage Lenders.

There was however some good news for those buying through shared-ownership – from this month, shared-ownership buyers will not pay stamp duty until they own 80% of their home.

This could mean savings of thousands of pounds for those affected and could encourage more people into home ownership. However, the downside is that this threshold may actually put people off owning a greater share of their home as they try to avoid the tax bill.

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