BUDGET 2010: Darling set to scrap Stamp Duty below £250,000
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Chancellor Alistair Darling is expected to announce in the Budget later today that Stamp Duty will be axed for first-time buyers purchasing property below £250,000.
The government imposed a Stamp Duty holiday last year which raised the Stamp Duty threshold from £125,000 to £175,000.
The move caused a flood of transactions in the run-up to the end of the Stamp Duty holiday on December 31, prompting mortgage approvals to plummet in January.
Ahead of the end of the Stamp Duty holiday there were widespread calls from the mortgage industry to extend the holiday into this year.
The BBC is reporting this morning Darling plans to announce that Stamp Duty won’t be levied on first-time buyer homes under £250,000.
Robert Sinclair, director of The Association of Mortgage Intermediaries, says: “”The current Stamp Duty regime distorts the market and prevents first-time buyers from getting a foot on the property ladder.
“The plans to raise the Stamp Duty threshold to £250,000, which we have been calling for, would provide a welcome boost to many first-time-buyers and also provide assistance to first-time movers in many parts of the country.
“However, we hope that the reform will also include a more fundamental review of this antiquated ’slab’ tax.”
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Readers' comments (17)
Trish Brown | 24 Mar 2010 10:16 am
Would I be correct in assuming that Stamp duty will start at 3% on houses sold at over £251,000?
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Joanna | 24 Mar 2010 10:22 am
We have completion date set for 31st March !, will we have to pay the stamp duty? Anybody knows when the new deal will start>
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Tom Cleary | 24 Mar 2010 10:23 am
This should not be restricted to FTB's only. Also, what if only one person is a FTB but their partner isn't? This could cause headaches but is a very welcome tax break...
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Anonymous | 24 Mar 2010 10:30 am
A welcome boost if true, but will this be a permanent policy or another short term electioneering "carrot"? Also I will be fascinated to see what is the definition of a "first time buyer". If my partner had been briefly married ten years ago and had owned a property with her ex, which was quickly sold when they split up, but I have never owned a property, where would we stand?
I suggest that if Captain Darling and Crash Gordon really want to get the housing market moving, they should do us all a favour and get rid of the Home Information Pack.
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Anonymous | 24 Mar 2010 10:40 am
A welcome boost to the market but not far enough. Stamp duty was only ever intended for way above average houses but due to rising prices soon became pretty much the norm. What we need is to see levels raised across the board allowing people to move from current properties. It is no good giving FTB the incentive to buy when there is no incentive for people to sell and move on which means a lack of available properties for the FTB. Another half measure from the government!
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Steve Wentworth | 24 Mar 2010 10:40 am
Jokers! Another intelligent well thought out plan from the Jokers in charge of our country. Why on earth did they not have a suitable stategy for Stamp duty at the end of 2009 to replace the stop gap plan. I know because they have no strategy!
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Anonymous | 24 Mar 2010 10:46 am
One of our fundamental economic flaws is the reliance on our housing market to drive the economy, the problem is, and remains uncertainty about employment, the level of savings required for a deposit, lending policy on new builds max 80% on houses, 75% in most cases for flats. It is the first time buyer that needs the assistance, but there are other merit worthy cases, how about stamp duty payable on all non owner occupier purchases ?
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John Lacy | 24 Mar 2010 11:16 am
It depends on the definition used for "first time buyer" so I'd rather see the scheme run for all properties up to £250,000 or the shennanigans will start in earnest
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Anonymous | 24 Mar 2010 12:15 pm
This measure still wouldnt address the problems in trying to sell a property over £250k.
At the moment you pay 1% below this threshold and then a whopping 3% over £250,000 ON THE WHOLE AMOUNT !!
Surely on properties over £250,000 it should have been tiered so you pay 1% up £250,000 and 3% on the AMOUNT OVER £250,000.
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Joanna | 24 Mar 2010 12:52 pm
We have completion date set for 31st March !, will we have to pay the stamp duty? Anybody knows when the new deal will start>
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