- author, Kate Whannell
- role, Political reporter
The Conservative manifesto is expected to include a pledge to permanently abolish stamp duty for first-time buyers on properties up to £425,000.
This tax is payable when buying property in England and Northern Ireland.
The zero-rate first-time buyers’ allowance threshold up to £425,000 is due to expire at the end of March next year.
The announcement comes as the party seeks to move away from controversy over the Prime Minister’s decision to make an early withdrawal from Thursday’s commemorations of the Normandy landings.
Speaking in a televised debate on Friday, Conservative cabinet minister Penny Mordaunt said the prime minister’s decision was “completely wrong”.
Their manifesto, due to be published in the coming days, is not expected to include any pledges on inheritance tax.
But Chancellor Rishi Sunak will vow to abolish the NHS if he is re-elected on 4 July even if it is deemed economically feasible – a promise previously made by Chancellor Jeremy Hunt.
Labour has frequently attacked the party for this promise, calling it an “unfunded pledge”.
Labour and the Liberal Democrats are also due to publish their manifestos next week.
The SNP’s policy outline is due to be published next week.
Stamp Duty is devolved to the Welsh and Scottish governments and is known as Land Transactions Tax and Land and Buildings Transactions Tax respectively.
The stamp duty cut for first-time home buyers was first introduced by Chancellor Liz Truss during her brief stint as chancellor in 2022.
At the time, Finance Minister Kwasi Kwateng said the changes would relieve 200,000 people from paying stamp duty.
Her Government has also increased the threshold at which other buyers must pay 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 and up
Stamp duty exemptions have also been put in place to help homebuyers hit financially during the coronavirus pandemic.
The average house price in the UK is around £260,000.
Stamp duty is set to increase by around £14.1 billion in 2021/22, with residential properties accounting for three-quarters of the total.
