Budget 2017 – Stamp duty abolished for all first time buyers up to £300,000

UK Chancellor, Philip Hammond, has confirmed “With effect from today for all first-time buyer purchases up to £300,000, I am abolishing stamp duty altogether.”

The Chancellor’s announcement on stamp duty for some first-time buyers was part of his efforts to solve the housing crisis. The Budget said: “The government will permanently exempt first time buyers from stamp duty for properties up to £300,000, with purchasers benefiting on homes up to £500,000.” Mr Hammond also unveiled a raft of proposals on housing in a bid to meet the target of building 300,000 homes a year to solve Britain’s housing crisis.

“We recognise the challenge for young first-time buyers, that in many parts of the country deposits are now very large.”

Stamp Duty Land Tax is the most damaging major levy on the books, slicing 75p off the economy for every pound it raises—many multiples more than council tax, income tax, or VAT.  It gums up the housing market by lumping people with huge bills for moving, stopping people from moving to get new jobs, and discouraging downsizing or upsizing. It’s also hated by those who pay it, coming in one giant bill and usually the largest single payment a household will ever make to the exchequer.

The abolishment of Stamp Duty Land Tax today will be welcomed by first time buyers and endeavours to boost the property market as a whole.