Housing tax grab raises £1bn

A PROPERTY tax grab fuelled by soaring house prices has handed the Treasury a billion-pound plus windfall this year, figures show.

Record charges for inheritance tax and higher stamp duty rates for buy-to-let properties has helped swell the public coffers.

According to data from HM Revenue & Customs, the amount handed over in inheritance tax hit £4.7billion last year – a rise of nearly £900million in 12 months.

Thousands of middle-class savers across the country are being dragged into the net because their homes are worth more than the £325,000 threshold.

Stamp duty payments are up 2 per cent, partly due to George Osborne’s extra charge on a second home, including landlords.

It has helped rake in an extra £433million for the taxman in just three months compared to the same period a year ago.

Last night experts said the fig- ures showed that the taxes were having a crippling impact on the housing market. Jonathan Isaby of the TaxPayers’ Alliance said: ‘The new Chancellor Philip Hammond should seize the opportunity to drastically simplify and reduce property taxes.’

Paula Higgins, of campaign group the Homeowners Alliance, added: ‘The money the Treasury is raising should be used to help struggling families onto the housing ladder rather than going into its coffers.’