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| Treasury denies stamp duty 'plan' | |
| (20 minutes later) | |
| Suggestions that the government has put forward a proposal to let homebuyers delay stamp duty payments are "simply wrong", the Treasury has said. | |
| On Tuesday, Chancellor Alistair Darling failed to rule out changing the tax in order to free up the housing market. | |
| The Tories accused him of playing "short-term games", while estate agents warned of greater "uncertainty". | |
| But the Treasury has now said the story had been "speculation" and a "number of options" were being looked at. | |
| Currently, people buying properties for between £125,000 and £250,000 pay 1% in stamp duty at the time of sale. | |
| Those spending more than £250,000 pay 3%, while homes worth more than £500,000 incur a 4% rate. | |
| 'Incentive' | |
| On Tuesday, Mr Darling refused to be drawn on newspaper reports that stamp duty was to be temporarily scrapped, as part of an economic recovery package being put together by the prime minister. | |
| He told the BBC he was "looking at a number of measures" and had not "concluded exactly what we need to do". | |
| Although we have called for a stamp duty holiday, I wish he hadn't said it Peter Bolton KingNational Association of Estate Agents | |
| A day later, the shadow Treasury spokesman, Philip Hammond, said floating a stamp duty suspension without confirming it one way or the other had "created a significant incentive for people to delay the purchase of a property in the hope of avoiding the payment of stamp duty on the transaction". | |
| "The uncertainty can only undermine the market further, reducing the volume of transactions when they are already at historic lows," he said. | |
| "Indeed, we now have the worst of both worlds - a potential delay in property transactions, but with no definite proposal on the table." | |
| 'Delicate market' | |
| Peter Bolton King, chief executive of the National Association of Estate Agents, said uncertainty over a possible "tax holiday" could hit sales, as buyers put off completing in a bid to avoid the charge. | |
| He added: "This uncertainty is a very, very dangerous thing - just to make a comment without backing it up in what is a very delicate market. | |
| "Although we have called for a stamp duty holiday, I wish he hadn't said it." | |
| But in a statement, the Treasury said: "Recent news stories suggesting the government has put forward a proposal on stamp duty are simply wrong. These stories are based on speculation. | |
| "As has been said on many previous occasions, the government has made clear that there are a number of options we will need to consider to help businesses and people get through what is undoubtedly a difficult time." | |
| The Conservatives temporarily suspended the tax on homes worth less than £250,000 during the 1991 recession. |