Money Alert: Stamp duty soars as homebuyers hand over £5.6bn to the Government

The amount of tax that the Government takes when you buy a home has soared to an average £12,000 per person, assuming you move three times.

In London, total stamp duty charges have reached £38,000 per homebuyer, according to calculations published by Lloyds bank today. In the year to March 2014, homebuyers in England and Wales had to hand over £5.6bn to the Government.

Around 83 per cent of home-movers were forced to pay the tax, up from just 17 per cent in 1998. Back then, the average first-time buyer was stung with a stamp duty demand for just £240. In May 2014 this figure was £2,382, a tenfold increase over the 16 years.

Research by the comparison site moneysupermarket.com last month found that the added burden of stamp duty is hindering three-quarters of prospective homebuyers.

It showed that almost three out of five would-be buyers don't have enough money to cover stamp duty fees as well as the deposit, while a further fifth will rely on someone else to help pay the duty.