Two in five home buyers could face stamp duty tax, report

Two in five home buyers could face stamp duty tax, reportAccording to a new report, about two out of every five home buyers could face a stamp duty land tax within five years in the UK as the house prices picks up in the country.

The new report said buyers might be forced to pay as much as £7,500 in "punitive" stamp duty costs by the year 2018 as the property market continues to recover in the UK. It said that four out of every five homes sold in 2012-13 in England and Wales will include stamp duty land tax during the coming five years.

The research for the TaxPayers' Alliance estimated that around 40 per cent of all the homes sold yet might face stamp duty of 3 per cent or higher, which could be around £7,500 or more in costs for the buyers. It said that about 99 per cent of homes in London and three in five in the North West will be liable for stamp duty in five years' time.

The research also said that East Midlands will record the fastest increase in the number of houses being subject to the stamp duty, increasing from just about half to around 70 per cent by 2018. The TaxPayers' Alliance has recently launched the Stamp Out Stamp Duty campaign to reduce the tax burden on housebuyers.