Treasury officials are investigating the possibility of temporarily scrapping stamp duty as a way of kick-starting the stalled UK housing market.
Property transactions are key drivers of the repair, maintenance and improvement market which is the main thrust of most builders merchants’ business.
The tax has added over £31.5bn to Treasury coffers in the last 10 years, fuelled by the massive rise in house prices during that time.
According to The Sun, minsters are worried that home purchasers are put off by the tax which kicks in at £125,001.
The charge is 1% between £125,001 and £250,000, 3% between £250,001 and £500,000 and a whopping 4% over £500,001.
Officials findings are due to be presented to the Prime Minister when he returns from the Olympic closing ceremony later this month.
Editor’s blog on the subject, click here