Wednesday 3rd October 2007
Stamp duty cuts are to "kick start" the zero-carbon homes industry, according to the government.
A policy objective outlined in the 2007 Budget calls for tax relief to be offered to environmentally-friendly properties.
The suggestions were made following research which found that new homes will account for about a third of all property by 2050, HM Revenue & Customs explains.
"So new homes have a vital role to play in helping to meet the UKs target of 60 per cent reduction in carbon emissions by 2050," the government body states in a regulatory impact assessment.
The document adds that the move complements efforts by the Department for Communities and Local Government to make all new homes carbon-zero by 2016.
Under the terms of the tax relief, domestic properties worth less than £500,000 would be exempt from stamp duty.
Those over the £500,000 threshold would receive a £15,000 discount - designed to ensure that the total benefit to the seller is not greater than the cost of implementing zero-carbon features.
However, the exemption applies only to new properties in the instance of their first sale, the assessment asserts.
Meanwhile, shadow chancellor George Osborne recently proposed plans to raise the stamp duty threshold for all properties to £250,000.
The Conservative MP said: "For this party lower taxes arent just for Christmas - theyre for life."
Financial services provider Abbey comments that about 60 per cent of first-time buyers are hit by stamp duty at the current level.
Clive Kornitzer of Abbey Mortgages adds that the firm "would support any legislation that will help lower the barriers to entry for first-time buyers".
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