Stamp Duty bombshell as Tory manifesto pledges to axe tax on homes worth up to £425k | Personal Finance | Finance

Rishi Sunak has unveiled the Conservative Party manifesto and pledged to scrap Stamp Duty entirely for homes worth up to £425,000 for first-time buyers.

The Stamp Duty pledge commits to freeing 200,000 property owners from paying Stamp Duty. The party also confirmed its pledge not to increase income tax or VAT rates.

The manifesto document states: “We will ensure the majority of first-time buyers pay no Stamp Duty at all, lowering the upfront costs of buying a first home.

“We will make permanent the increased to the threshold at which first-time buyers pay Stamp Duty to £425,000 from £300,000, which we introduced in 2022.”

In total, the package of employee and self-employed national insurance cuts – combined with the previously announced “triple lock plus” tax break for pensioners, child benefit changes, stamp duty and capital gains tax measures – would amount to a £17.2 billion annual cost to the Exchequer by 2029-30.

Mr Sunak said it would be paid for by curbing the “unsustainable” rise in welfare.

The Conservatives will also keep the Mortgage Guarantee Scheme and to keep “supporting more families to buy through shared ownership”.

The Tories have also set out plans for a further 2p cut in National Insurance from the current eight percent to six percent.

Mr Sunak said that plans ot halve the tax down to six percent by 2027 would save workers on the average salary of £35,000 a total of £1,350 a year.

They are also planning in the next Parliament to scrap entirely the main rate of National Insurance for self-employed workers.

The Tories have also restated their “long term plans” to scrap National Insurance entirely, raising the question of how the state pension will be funded in future.

Costings in the manifesto set out that the Tories will reduce taxes by £6.2billion in the 2025 to 2026 tax year with £17.2billion in tax cuts in the 2029 to 2030 tax year.

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