Measures introduced in Budget 2005 mean that 89 per cent. of property transactions pay either no or 1 per cent. stamp duty land tax and the vast majority—currently around 94 per cent—of estates will continue to pay no inheritance tax. The Government have also stated that gains arising on disposal of a principal private residence will continue to be exempt from capital gains tax.
International comparisons of taxes for each sector of the economy using published data (for example from the OECD) can be misleading, because similar taxes in two countries may be classified as falling on different bases. However the level of property taxation has remained broadly constant in the UK, EU15 and the USA since the 1960s.