Property tax revenues hit £6.7bn

12 April 2012

Revenue from inheritance tax and the higher rates of stamp duty on homes soared to a record £6.7 billion in the last financial year, according to new research.

Halifax said the amount the Government collected through stamp duty on properties valued above £250,000 had risen by 175% in the past half decade.

In the last financial year, Government coffers were boosted by £3.4 billion from the higher rates of stamp duty, compared with £1.2 billion in 2000/01.

Analysis showed that the average house price in 97 of the 645 parliamentary constituency surveyed fell above £250,000 - the level at which the higher rate of 3% stamp duty kicks in.

The typical house price in three constituencies was above the 4% tax level of £500,000.

According to the lender, the Government is also taking an increasing slice of revenue through inheritance tax (IHT).

In the first seven months of financial year 2006/07, IHT revenue was a record £2.1 billion, up 9% on the same period for 2005/06.

Last financial year the Government collected £3.3 billion in IHT revenue and the figure is expected to rise to £3.6 billion in 2006/07.

Halifax estimated that the number of properties in the UK valued higher than the 2006/07 IHT threshold of £285,000 now stands at 1.5 million - 8% of all owner-occupied properties.

This figure will nearly triple to 4.2 million properties by 2020 if the threshold is only increased in line with retail price inflation, the lender warned.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in