Gordon Brown’s stamp duty plan seems more generous than it is on 100 Mortgages

$Gordon Brown\'s stamp duty plan seems more generous than it is$

In a bid to sell the stamp duty package, the Treasury has been accused of taking an over-optimistic view of the housing market. Gordon Brown announced on Tuesday that the Stamp Duty threshold would be raised from £125,000 to £175,000 over the next twelve months, this tax cut was to cost the government around £600 million according to the Treasury.

With every sale in the new tax-free bracket now escape a stamp duty payment between £1,250 and £1,750 – money that is lost to the Treasury.

So if when we do the math’s we can see that the Treasury is expecting to sacrifice the revenue on between 342,000 and 480,000 property sales during the tax free year. These figures do not really add up considering that figures out from the Halifax based on sales that would have fallen into that tax-free bracket from July 2007 were only 230,000.

So the fact the property market and economy has weaker as time has moved on, how does the Treasury expect the property sales to jump up to between 342,000 and 480,000 we ask,
There is also housing data out that suggests that sales this year could be as much as 50 percent lower than last year, some experts believe the Treasury as over estimated how much the stamp-duty scheme will come them.

Source: Telegraph

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