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Stamp Duty

Volume 448: debated on Thursday 29 June 2006

To ask the Chancellor of the Exchequer (1) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 1 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 5 per cent. on sales of £500,000 and above; and if he will make a statement; (80297)

(2) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 1 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 6 per cent. on sales of £500,000 and above;

(3) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £150,000 or less, (b) 2 per cent. on sales between £150,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) (i) 5 and (ii) 6 per cent. on sales of £500,000 and above;

(4) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £125,000 or less, (b) 2 per cent. on sales between £125,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) 5 per cent. on sales of £500,000 and above;

(5) if he will estimate the revenue implications of restructuring stamp duty on residential property sales to charge marginal rates of (a) 0 per cent. on property sales of £150,000 or less, (b) 1 per cent. on sales between £150,000 and £249,999, (c) 5 per cent. on sales between £250,000 and £499,999 and (d) (i) 5 and (ii) 6 per cent. on sales of £500,000 and above.

The estimated revenue cost, in 2007-08, of restructuring stamp duty on residential property sales according to the seven marginal rate schemes (where each rate only applies to consideration above the threshold for each range) described in the question is given in the following tables:

Percentage rate

Tax regime 1 thresholds

0

£0-124,999

1

£125,000-249,999

5

£250,000-499,999

5

£500,001 and above

Revenue cost (£ billion)

2.4

Percentage rate

Tax regime 2 thresholds

0

£0-124,999

1

£125,000-249,999

5

£250,000-499,999

6

£500,001 and above

Revenue cost (£ billion)

2.2

Percentage rate

Tax regime 3 thresholds

0

£0-149,999

2

£150,000-249,999

5

£250,000-499,999

5

£500,001 and above

Revenue cost (£ billion)

2.1

Percentage rate

Tax regime 4 thresholds

0

£0-149,999

2

£150,000-249,999

5

£250,000-499,999

6

£500,001 and above

Revenue cost (£ billion)

1.8

Percentage rate

Tax regime 5 thresholds

0

£0-124,999

2

£125,000-249,999

5

£250,000-499,999

5

£500,001 and above

Revenue cost (£ billion)

1.6

Percentage rate

Tax regime 6 thresholds

0

£0-149,999

1

£150,000-249,999

5

£250,000-499,999

5

£500,001 and above

Revenue cost (£ billion)

2.7

Percentage rate

Tax regime7thresholds

0

£0-149,999

1

£150,000-249,999

5

£250,000-499,999

6

£500,001 and above

Revenue cost (£ billion)

2.4

These figures do not include any allowance for behavioural changes.