THE Government came under 11th hour pressure yesterday to extend the
homebuyers' holiday from stamp duty.
A new survey showed a large majority of MPs wanted to see the
eight-month suspension of the tax on house purchases -- due to end today
-- turned into permanent abolition.
But the Treasury insisted that the suspension, announced by Chancellor
Norman Lamont last December in an effort to kick-start the housing
market, was always meant to be a temporary measure.
Mr Lamont exempted buyers of homes worth up to #250,000 from the tax,
which was paid at 1% of the value of the property.
Housing experts are divided on the effectiveness of the suspension,
but the Access Opinion survey of a representative sample of 100 MPs
shows 65% of Tories and 67% of Labour MPs favour abolition.
Just 12% want the tax reimposed and 15% would like to see its
reintroduction delayed until the housing market picks up.
A Treasury spokesman said: ''We never expected a dramatic effect, but
with 90% of households exempted during the moratorium, it is probable
that 500,000 will have benefited.''
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