View more on these topics

Tories to raise stamp duty threshold for first-time buyers

The Conservatives have pledged to abolish stamp duty for first-time buyers on homes costing up to £250,000.

This could mean a potential saving of up to £2,500 for young couples.

This announcement comes at the Conservative’s party conference in Blackpool this week.

The Tories said that this would mean that nine out of ten would-be homeowners would not pay the levy.

The stamp duty is currently not paid on a home costing £125,000 or under. It is then charged at one per cent of the entire purchase price up to £250,000 and rises on a sliding scale up to four per cent for homes costing more than £500,000.

London & Country mortgage specialist James Cotton says the Tories pledge is a decent one as stamp duty is a big burden on first-time buyers.

But Cotton points out that stamp duty still needs more sweeping changes to its structure.

“It sounds like a decent pledge but the problem is that stamp duty is often used as a political tool by parties. It’s quite an easy win especially for the opposition parties but of course it would be a huge help to a lot of people.”

Cotton says he expects Labour to come out soon with further changes to the stamp duty in response to the Tories.

Recommended

Over three million relying on property to fund retirement

Around 3.2m people are relying on property to fund their retirement while 33 per cent of UK adults are not making any provision for their retirement says Baring Asset Management.Research from Barings shows that 7 per cent of UK adults are relying on property investments to fund their retirement which Barings says leaves them “dangerously […]

Aegon on tour again after protection seminar success

Aegon is to hold more business protection seminars for IFAs after good feedback from advisers.At the start of the year, Aegon ran an integrated sales and marketing campaign to promote its business protection proposition.The campaign centred on the creation of a business protection toolkit and a series of business protection seminars which were held across […]

Suffolk Life launches MasterSipp with protected rights option

Suffolk Life has launched a trust based Sipp product which will allow customers to self-invest protected rights money.The existing Sipp will be closed to new business from November but customers will be able to remain in the Suffolk Life Deed Poll scheme if they wish.However, they will have the option to transfer into the new […]

Bank swerve steadies nerve

The Bank of England has performed a dramatic U-turn by saying it will pump £10bn into the money markets in to ease the liquidity crunch and reduce three-month Libor.It had steadfastly refused to provide extra liquidity despite earlier action taken by the US Federal Reserve and European Central Bank to pump cash into the system.The […]

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment