Gordon Brown is considering suspending stamp duty in an emergency measure to kickstart the housing market, it was claimed last night.
The idea, being worked on by the Treasury, is part of a package of help for hard-pressed families.
Details passed to The Sun suggested that buyers at all levels would avoid paying the tax, which has brought in £31.5 billion over the past ten years.
Stamp duty is paid by property buyers, and is levied at 1 per cent for houses between £125,001 to £250,000, 2 per cent for £250,001 to £500,000, 3 per cent for £250,001 to £500,000 and 4 per cent for £500,001 or more.
Officials will present their findings to the Prime Minister when he returns from the Olympic Games closing ceremony at the end of the month.