THOUSANDS of homeowners in the North-East could be unnecessarily paying stamp duty because of their postcode.

People who have bought houses in areas designated as disadvantaged since 2001 are exempt from the tax on property transactions.

One in four wards in the country qualifies for the exemption and the North-East has 192 such disadvantaged areas.

However, a Darlington man has told how he was charged £1,050 stamp duty on his home in Ullswater Avenue.

Stan Naisbitt, 58, a client of Hewitts Solicitors of Newton Aycliffe, County Durham, said: "If I had that money in my pocket, I could have done something around the house or taken the family on holiday."

As well as an apology from his solicitor, Mr Naisbitt received 58p interest from the Inland Revenue.

Roy Kershaw, property partner of Hewitts Solicitors, said: "Unfortunately, on this occasion, that check was overlooked and we apologise for that.

"As soon as this came to light, we contacted the Inland Revenue, which refunded the money, and we have re-examined our processes to make sure this is always double-checked in future.

"We are considering an additional gesture by way of apology for any inconvenience."

As the 58p interest only covers a portion of the time Mr Naisbitt was out of pocket, Hewitts has promised to calculate the full amount, which will be forwarded to him.

George Curry, 70, of Keswick Grove, Darlington, paid £640 two-and-a-half years ago in stamp duty.

He wrote to his solicitor at Blackett, Hart and Pratt, asking why he was not informed that he was exempt.

On Wednesday, he received a letter saying he would be receiving a refund.

He said: "I am happy that I am getting my money but I think that people should be made aware of the situation."

A spokesman for Blackett, Hart and Pratt said the firm did not comment on its clients' cases.

A spokesman for the Inland Revenue said: "If relief has not been claimed but it is available, then we will repay the money, subject to the stamp duty legislation which covers repayments."

You can check whether or not your postcode falls within a disadvantaged area by logging on to www.inlandrevenue.gov.uk