- Author, Kate Whannel
- Paper, Politics reporter
A pledge to permanently get rid of stamp duty for first-time buyers of properties costing up to £425,000 is expected to be included in the Conservative manifesto.
Tax is paid when someone buys property in England and Northern Ireland.
What is known as the zero-rate cap for relief for first-time buyers of up to £425,000 is set to expire at the end of March next year.
This comes as the party tries to overcome the row over the Prime Minister’s decision to leave D-Day celebrations on Thursday morning.
In a televised debate on Friday, Conservative Cabinet Office minister Penny Mordaunt said the Prime Minister’s decision was “completely wrong”.
His manifesto, which is expected to be published in the coming days, is unlikely to include any promises about inheritance tax.
However, Prime Minister Rishi Sunak will promise that if re-elected on July 4 he would abandon National Insurance, albeit when it is considered affordable to do so – something Chancellor Jeremy Hunt has already committed to.
Labor has frequently attacked the party for making the promise, calling it an “unfunded promise”.
The Labor Party and Liberal Democrats will also publish their manifestos next week.
The Scottish National Party prospectus is expected next week.
Stamp duty is allocated to the governments of Wales and Scotland, where it is called Land Transaction Tax and Land and Buildings Transaction Tax respectively.
Stamp duty relief for first-time buyers was first introduced in 2022 by Liz Truss during her brief period as Prime Minister.
At the time, its chancellor, Kwasi Kwarteng, said the change would eliminate 200,000 people from paying stamp duty.
His government also increased the threshold at which other buyers had to start paying tax from £125,000 to £250,000.
- 0%: £0 – £250,000 (£425,000 for first time buyers)
- 5%: £250,000 – £925,000
- 10%: £925,000 – £1,500,000
- 12%: £1,500,000+
There was also a stamp duty holiday during the Covid pandemic, aimed at helping homebuyers whose finances have been affected.
The average house price in the UK is around £260,000
In 2021/22, stamp duty raised around £14.1 billion, with residential properties making up three-quarters of the total.
