Stamp duty holiday 'could be extended'

Chancellor Alistair Darling is set to extend the so-called stamp duty 'holiday' in this afternoon’s Budget, according to recent reports.

Stamp duty is normally payable at 1% on residential properties worth in excess of £125,000 and no more than £250,000.

Last September, the Government extended this lower threshold from £125,000 to £175,000, for a period of one year.

However, recent reports suggest that the threshold may be kept at the higher rate of £175,000 until the end of this year.

The measure could form part of a £1bn housing package which is expected to be announced in the Budget, in a bid to boost house building and stimulate the housing market.

The speculation follows recent reports that the Government is set to announce significant efficiency savings across Whitehall.

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