Stamp Duty May Be Scrapped

Alistair Darling, the Chancellor, is studying proposals to scrap stamp duty temporarily in an attempt to encourage home buyers. The move would save someone buying a £250,000 home about £2,500, rising to £40,000 for those buying a £1 million property. The payment may simply be deferred, to be repaid at later date.

It is understood the move is being considered as the centrepiece of a new Government economic plan to be unveiled in September. Gordon Brown, the Prime Minister, hopes that moves to bolster the housing market and cut fuel bills may help revive his premiership.

In an interview with the BBC, Mr Darling refused to rule out introducing the stamp duty holiday. He said: "I am looking at a number of measures and I am not going to be drawn on that because we have not concluded what exactly we need to do...It is helping people that is important. I want to look at a range of options that will help people."