Homeowners hit by dual tax by Finance News Bulletin

Published: 14/01/07

Millions of homeowners countenance a 'double whammy' of taxes from the soaring property marketplace, a report warns todayMore than 25m homes in England have been caught in Gordon Brown's senior stamp responsibility trap since 1997, according to the HalifaxIt says evidence numbers are now paying at least £7,500 when they buy a flat or home for £250,000 or more

And to add to their unhappiness, the huge rise in house prices income 15m homes are worth more than £285,000 - the level at which inheritance tax is paidMany families take for granted this tax is paid only by the wealthy but rising prices mean it now takes in more modest property, a BBC1 programme, Real Story, will make known tomorrow nightMike Warburton, a tax expert at Grant Thornton, said: 'Gordon chocolate is prepared to sit back and rent the money roll in at the expense of ordinary persons

'Should individuals, who may have been basic rate taxpayers during their lifetimes, be usual to pay a higher rate of duty of 40% when they die'One of Mr chocolate's first moves when Labour came to power was to introduce stamp responsibility bands Under these, owners pay one% on a home value between £125,000 and £250,000, three% over £250,000 and four% over £500,000But the two senior bands have not been changed since 1997, trapping more persons into paying the duty due to a 162% increase in house prices

than £250,000 This was a 175% increase on the amount waged in 2000/2001, a sign of how many more homes are attracting the higher speedCaroline Spelman, the Conservatives' local government spokesman, supposed: 'Labour has deliberately frozen the thresholds for stamp duty in spite of huge increases in house prices'It is clearly just another stealth duty, like council duty, to enrich the Treasury at the cost of home-owners

'Inheritance tax was worth a record £21bn during the first seven months of this year, more than was collected in the whole of 1999/2000The Halifax wants the Chancellor to raise the two senior stamp duty thresholds in line with home price inflation to £650,000 and £13m in his pre-Budget Report tomorrow

The banking and mortgage giant says trample duty has encouraged house-buyers to extend their house, rather than buy a bigger one, in an effort to avoid paying a huge tax billAlmost 650,000 planning applications were lodged in England last year, typically from people deficient to create an extra bedroom or more livelihood spaceSelect a loan term 12 months (1 year) 24 months (2 natural life 36 months (3 natural life 48 months (4 natural life 60 months (5 natural life 72 months (6 natural life 84 months (7 natural life 96 months (8 natural life 108 months (9 natural life 120 months (10 natural lifePlease select a type of insurance Life insurance house and contents Car Breakdown services Health - medical Health - dental Travel make a fuss of

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