Tories pledge £250k stamp duty threshold

The Conservatives have promised to raise the stamp duty threshold to £250,000 if elected.

The party said the move would exempt the vast majority of first time buyers from the duty. It is the third and final pledge in the party's £4bn package of tax cuts to be introduced in a first Conservative budget.

Eighty per cent of house purchases would attract no stamp duty at all, the party said.

Tory leader Michael Howard said the move would help young people to get onto the property ladder.

"And it will make it easier for young couples starting a family to buy a bigger home.

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Comments

will this temporarily kill the house market

rasmith | | Permalink

Ok so you promise the tax cut, you don't say when it will apply from. Now if there is any chance of a Tory win, this should kill the house market for property less than £250k for the time being at least.

I guess the pay off should be a better market once the tax cut actually happens, but as with all these big announcements, take a pinch of salt - it can't be as good as it seems.

An incremental system would be best

Anonymous | | Permalink

No houses sell for just over the band amount now anyway - an incremental banding system would work much better and may even collect more tax once the large incentive to distort the market is removed. No major party seems to be considering this obvious option.

As Labour is likely to win in any event no-one will move to a more expensive house as they won't be able to afford the council tax -a 75% increase since they came to power so by the end of a third term presumably it will double. Anyone noticed improved services for the increases whoever runs your council?

Council Tax increases

AnonymousUser | | Permalink

Rachel, costs have increased generally by over 20% since 1987 and average earnings by over a third. Therefore it is too simplistic to say that Council Tax has increased by 75% since Labour came to power as if this was some malicious public sector conspiracy.
In my experience everyone whinges about the council but very few actually bother to do anythng constructive.