ALMOST 6 FOLD INCREASE IN STAMP DUTY COLLECTION IN LONDON

12.01.00am UTC (GMT +0000) Thu 8th Apr 2004

Simon has highlighted that Stamp Duty has risen 484% in 6 years

Stamp duty in London has rocketed by almost 500% in the last 6 years to £965million according to new figures revealed by Liberal Democrat London Mayoral candidate Simon Hughes.

The figures taken from Inland Revenue figures show that in 1996-97, £165million was raised in stamp duty in the capital. By 2002-03 this had rocketed to £965million - an increase of 484%. Following the Budget, this rise is set to continue as house prices continue to rocket.

Simon Hughes said:

"Increases in stamp duty and the house price boom have brought in millions in extra income for the Chancellor in the last seven years from London. Stamp duties are a classic Gordon Brown stealth tax - they discourage something that is good for the economy, they make life more expensive and there is significant tax evasion.

"The present system encourages tax avoidance by otherwise honest people, and discourages people from moving house for no reason. Modernising the system to make it more like other taxes with a tax free allowance would make the system fairer and reduce evasion.

"If the Chancellor reforms the system he can encourage honesty at no cost to the public purse. Stamp duty is unfair because it penalises people for moving house, when we should be encouraging mobility rather than discouraging it."

ENDS

Notes to editor

The figures are taken from the Inland Revenue and show the yield attributable to residential property:-

Stamp Duty (£millions) 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-2002 2002-2003 %age increase Total increase

London 165 220 305 595 710 820 965 484.84 £800m

http://www.inlandrevenue.gov.uk/stats/stamp_duty/03IR152.pdf