Stamp Duty

Treasury written question – answered on 19th February 2007.

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Photo of Julia Goldsworthy Julia Goldsworthy Shadow Chief Secretary To the Treasury, Treasury

To ask the Chancellor of the Exchequer pursuant to the answer of 24 January 2007, Official Report, column 1856W, what the evidential basis was for his estimate that over half of all first time home buyers are exempt from stamp duty.

Photo of Edward Balls Edward Balls The Economic Secretary to the Treasury

Based on HMRC administrative data from 2005-06, very slightly under half (around 48 per cent.) of all residential transactions do not bear stamp duty as a consequence of falling under the lowest stamp duty land tax price threshold or of benefiting from disadvantaged area relief.

Due to the significantly lower price profile of properties bought by first time buyers, compared to all residential transactions, it is therefore estimated that the percentage of residential transactions involving first time buyers in 2005-06 which are not liable to stamp duty land tax is higher than 50 per cent.

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