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Homeowners over £500 poorer under Labour |
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As house prices and housing costs rise, the ownership vs rental debate is increasingly swinging towards renting for new households. According to a recent report, homeowners are paying an extra £550 a year in tax under Labour when compared to the previous government. The Council of Mortgage Lenders has compiled figures that show that, under the Major government, home owners received £2.6 billion in mortgage interest tax relief but Labour continued the trend started by the Conservative government of restricting mortgage tax relief and eventually abolished it in 2000.
According to the CML, home owners now pay £7.5 billion in inheritance tax and stamp duty to the Treasury – equivalent to £550 per household in the private sector. The CML said the biggest strain on households came from inheritance tax, the threshold of which has not been increased in line with inflation – if it had the threshold would be over £500,000 rather than the current level of £275,000. Bob Pannell of the CML commented that the high tax penalties on homeowners “sit oddly with the Government’s stated goal of extending home-ownership to three-quarters of the population.” |
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