Peter Bolton King, Chief Executive at the National Association of Estate Agents comments on the stamp duty and inheritance tax announcements in the 2006 budget today, 22nd March.
Stamp Duty
"The £5,000 raise in the minimum stamp duty threshold is pitiful. The Government argues this exempts an additional 40,000 homebuyers each year. However the focus should be on helping first-time buyers rather than buyers in general. Stamp duty presents the one of the largest barriers to first-time wanting to purchase property. Yet again the Chancellor has let this important group down.
"As first-time buyers often compete with buy-to-let landlords, there is an argument that says the Chancellor is simply creating greater competition for this type of property, making it even harder for first-time buyers to purchase a home of their own.
"Needless to say we were greatly disappointed that the chancellor failed to heed our calls for a revision of all stamp duty thresholds."
Inheritance Tax
"We are pleased the Government has agreed to increase the levels at which those inheriting property are subject to inheritance tax. However the Government has failed to note the NAEA's request to keep inheritance tax inline with house price inflation. With this in mind, inheritance tax remains an unfair levy on the vast majority."
