Howard promises to slash stamp duty
Millions of homes would be exempt from stamp duty if the Conservatives win the general election after Michael Howard pledged to increase the stamp duty threshold.
The Conservative leader said that his party would increase the stamp duty threshold from £125,000 to £250,000, slashing taxes by £1 billion.
An average house buyer in Britain would be exempt from stamp duty under the proposals, benefiting both first time buyers looking to get on the housing ladder, as well as existing homeowners looking to move into larger properties, he said.
Mr Howard said that stamp duty was one of the Government’s “stealth taxes” which imposed an unfair burden on homeowners. The amount of money raised from stamp duty on residential property has gone up from £675 million to £3,795 million since 1997.
“Life is a struggle for too many families in Britain today. Last year average incomes fell for the first time in a decade – thanks to Mr Blair’s punishing stealth taxes. But it’s not enough to criticise. It’s time to offer practical help and that’s what Conservatives will do,” he said.
Today’s announcement comes under the Tories’ pledge of £4 billion worth of tax cuts, including promises to reduce council tax, as well as making pensions savings exempt from tax.
Labour and the Liberal Democrats have both denounced the plans.
Lib Dem economics spokesman Dr Vince Cable, said: “The Tories say that they will spend more on schools, hospitals and defence, cut taxes and balance budgets all at the same time. This is implausible and unachievable.
“The British public will not be taken in by this uncosted bribe – they realise it’s based on fantasy economics and that a cheque from the Tories is going to bounce.”
Chancellor Gordon Brown denounced the plans as “irresponsible and ultimately fraudulent”.
Concern has also been voiced that slashing stamp duty could lead to an increase in property prices and inflation rates.
