Holiday Lettings news - Gordon Brown may suspend stamp duty

Gordon Brown may suspend stamp duty

Gordon Brown may suspend stamp duty in order to revive Britain's property market. The plan to drop stamp duty spearheads an economic recovery package according to recent reports.

Details of the temporary suspension of stamp duty are being worked on by Treasury officials, claims The Sun. Home buyers have paid £31.5bn in stamp duty over the past ten years, however ministers now fear that the duty is putting people off buying property, causing Britain's property market to stagnate.

The plans for the emergency package to help kick-start Britain's economy, including abolishing stamp duty, will be presented to Gordon Brown at the end of August when he returns from the closing ceremony at the Beijing Olympics.

Speaking to The Times in July Gordon Brown hinted that changes to stamp duty were possible: "Stamp duty is always a factor when people buy and sell houses but we need to make sure that we support the financial system too."

Stamp duty is currently paid on a sliding scale depending upon the value of the property being purchased. The tax is currently levied at one per cent for properties worth between £125,001 and £250,000, three per cent for those worth £250,001 to £500,000 and four per cent for those over £500,001.

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