Stamp Duty Debacle

Much has been made in the press recently about indications from Government that they might be prepared to alleviate Stamp Duty Land Tax (SDLT) in some way to assist housebuilders and the negative effect that this has had on the market.

However, the major problem facing housebuilders is not so much SDLT but an absence of mortgage lending to those individuals who want to buy the properties that the builders have for sale. I suggest therefore that Alistair Darling focuses his attention on increasing the money supply first and foremost.

Turning to SDLT - my husband and I bought our current house in 1977 for the princely sum of £30,000. As a tax specialist I can remember this figure clearly because it was the limit up to which no stamp duty was payable. Were we to sell our house today it would realise £350-400,000, but the current SDLT exemption for houses is only £125,000 - a massive shortfall.

If successive Governments since 1977 had simply increased the SDLT exempt amount in line with property prices generally; there would be much less need to consider a special relief. Has the time now come for all tax exemptions to be inflation proofed to preserve their true value to the tax-paying public?