Brown's budget to affect property owners Article Published: 22:37 19/03/2007 Article Classification: Olive Tree Head Office
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Mr Brown is widely expected to tighten the rules on inheritance tax in this, his 11th Budget. And with property prices continuing to rise, many believe he will act on the issue of stamp duty. Currently, buyers have to pay the duty on properties priced above £125,000.

Some calculations suggest that the IHT threshold would be £390,000 if it had risen in line with house price inflation over the past 10 years.

He may also offer a few concessions to property owners who are prepared to "go green".

Ernst & Young predicts the chancellor will set out more details on the stamp duty land tax exemption for the purchase of so-called "zero-carbon" homes, first mooted in his pre-Budget report.

There is also speculation that he will offer tax incentives to encourage people to install solar panels, wind turbines and other carbon-free sources of energy in their homes.

Former Tory chancellor Kenneth Clarke said Mr Brown had "got the public finances into a quite dreadful mess".

But a leading economist said the economy had ended 2006 "strongly" and future growth projections were healthy.

"Mr Brown will once again undoubtedly talk up the extended strength and stability of the economy under his stewardship," said Howard Archer, chief economist at Global Insight.