Prime Minister Rishi Sunak Pledges to Axe Stamp Duty for First-Time Buyers on Homes up to £425,000

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Home Breaking Prime Minister Rishi Sunak Pledges to Axe Stamp Duty for First-Time Buyers on Homes up to £425,000

Prime Minister Rishi Sunak Pledges to Axe Stamp Duty for First-Time Buyers on Homes up to £425,000

In a major policy announcement ahead of the Conservative Party’s upcoming manifesto reveal, Prime Minister Rishi Sunak has pledged to abolish stamp duty on homes valued up to £425,000 for first-time buyers. This move, reported by The Telegraph, is expected to benefit approximately 200,000 households annually.

Currently, stamp duty land tax applies to property sales over £250,000. However, starting from March next year, the threshold is set to decrease to £125,000 following the end of a “temporary” relief period. This adjustment will broaden the tax’s scope, impacting more buyers with potentially increased costs.

The proposed abolition of stamp duty for first-time buyers marks a significant step in the Conservatives’ housing policy, building on recommendations from former Prime Minister Liz Truss’s Growth Commission. Chancellor Jeremy Hunt had previously stated that the party would refrain from raising capital gains tax, stamp duty, or the number of council tax bands, nor would it embark on an expensive council tax revaluation.

David Phillips, Associate Director at the Institute for Fiscal Studies, has been a vocal critic of stamp duty. He described it as “one of the most economically damaging taxes levied by the Government,” arguing that it significantly escalates the cost of moving, thus hampering both the housing and labour markets.

Prime Minister Rishi Sunak Pledges To Axe Stamp Duty For First-time Buyers On Homes Up To £425,000

This announcement coincides with a turbulent week for the Conservative Party, as Penny Mordaunt, Leader of the House of Commons, criticised Prime Minister Sunak for leaving the D-Day 80th anniversary events prematurely. Mordaunt, a Navy reservist, asserted that Sunak’s departure was “completely wrong” and emphasised the importance of his apology to both veterans and the public. She cautioned against turning the incident into a “political football.”

During a seven-way BBC debate, Mordaunt elaborated, “What happened was completely wrong, and the Prime Minister has rightly apologised for that, apologised to veterans but also to all of us, because he was representing all of us.”

The commitment to reform stamp duty is seen as a strategic effort to boost the Conservative Party’s appeal among first-time buyers, amid growing pressure from Labour’s own housing policies. The full details of the Conservatives’ housing strategy are expected to be outlined in their manifesto next week.

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