Conservative MPs have called for wide reforms to stamp duty, including increasing the threshold from £125,000 to £500,000.
In a parliamentary debate last week, Conservative MPs argued first-time buyers should be from the tax and that it should be linked to house price inflation. Tory MP for St Albans Anne Main said the tax is seen as an “untouchable cash cow”.
She said: “Stamp duty is a strong contender for the worst-designed tax. The Government should tackle the unfairness of paying stamp duty on ordinary homes below £500,000.”
Buyers currently pay 1 per cent stamp duty on properties worth more than £125,000, 3 per cent above £250,000 and 4 per cent above £500,000. For homes worth more than £1m, buyers pay 5 per cent and 7 per cent on properties worth £2m or more.