Top Tories want to see the Prime Minister either abolish Stamp Duty or Inheritance Tax as they look to shore up floundering poll numbers ahead of next year’s General Election.
Labour has built a commanding lead in the polls with some experts believing the party could outdo its results in the 1997 General Election next year.
This has further been reinforced by the by-election victories in Tamworth and Mid Bedfordshire – both seats where the Tories saw a large majority overturned.
The Times reports that senior Tories are now considering an “aspirational” cut to Stamp Duty should the economy continue to improve.
It also reports that scrapping Inheritance Tax could also be another option under consideration.
Homebuyers currently pay Stamp Duty if their home costs more than £250,000. In September homebuyers paid over £1bn in Stamp Duty.
In March 2025 the threshold will drop to £125,000 – taking the tax bill on an average-priced home in England up from £2,980 to £5,480.
Speaking earlier this week Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “There are enough spare bedrooms in England to house every person in London nearly three times over.
“With at least 24 million spare bedrooms across the country, there needs to be more of an incentive to downsize.
“Stamp Duty is an unavoidable upfront cost, which could amount to tens of thousands and thousands of pounds – it’s no surprise potential downsizers could be deterred by the thought of paying a hefty bill, along with the other associated costs, to ultimately end up with something less valuable. There could be many people who feel it just doesn’t make financial sense to downsize.”
He added: “It’s only going to get worse in seventeen months’ time when the Stamp Duty thresholds change again and the bill on an average priced home jumps by £2,500.
“It’s clear that a long-term solution needs to be established, one which aims to support buyers who need to move both up and down the ladder.”
