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Homebuyers pay over £1bn in tax - News

06/10/2006 - Stamp duty rakes in record amounts for the Government

Property owners paid more that £1bn in tax during the first three months to June. This was 30per cent more than in the quarter before. A combination of higher property valuations and an increase in properties sold within the current stamp duty payable bracket has meant receipts to the Government have soared. The average homebuyer paid £3,734 stamp duty in the second quarter of this year.

The Chancellor increased the stamp duty threshold to £125,000 but as property prices have continued to rise only a small minority of home owners fail to qualify to pay. A spokesman for the Halifax said that if the threshold had naturally risen with house price inflation since 1993, the tax paying start point would be for properties of £171,500 or more.