Two-year-old law could be scrapped next month costing UK households £2,500 each

Stamp duty could be reduced from £425k to £300,000 - in a brutal blow to home buyers.
-Credit: (Image: Reach Publishing Services Limited)


A two-year-old rule could be scrapped by the new Labour Party government in the Autumn Budget - costing UK households THOUSANDS. Stamp duty could be reduced from £425k to £300,000 - in a brutal blow to home buyers.

The threshold hike from the Liz Truss Conservative Party government could be reverted by the Labour Party. The changes will mean that about 309,000 more purchases a year are subject to the tax and the move is expected to add £2,500 – and potentially much more - to the cost of buying a property based on the average sale price for England at £300,830.

Adam Corlett, principal economist at the Resolution Foundation, said in a warning: “The chancellor will need to announce significant tax rises in her upcoming budget, but there is one tax cut she should announce too — making permanent the increased threshold for paying stamp duty.

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“This measure is due to expire next April, and will cost movers up to £2,500. Stamp duty is a fundamentally bad tax that restricts people’s ability to move, and there are plenty of other places where Rachel Reeves can look for tax revenue.”

A spokesperson for the property sales portal Zoopla said: “Thousands of first-time buyers have benefitted from the relief in stamp duty introduced in 2022. Those looking to purchase their first home should act this Autumn if they are to avoid paying more in stamp duty, particularly if they are looking to purchase a home in Southern England, an area where first-time buyers are likely to see a sizable increase in stamp duty once the changes come into effect next April.

“Those not looking to purchase until after 1st April, should make sure they build the additional stamp duty fees into their plans and account for it in their overall budgets.”