Budget 2017 stamp duty: What did Philip Hammond say about stamp duty TODAY?
In order to get more people on the first rung of the housing ladder, the stamp duty cut also applies to the first £300,000 of homes worth half a million.
Philip Hammond said: “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 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,” Mr Hammond told BBC One’s The Andrew Marr Show.
“Nobody is saying we’ve done enough. We must do more. We recognise there’s a challenge there and on Wednesday I shall set out how we intend to address it.”
Ben Southwood, head of research at the free market think tank the Adam Smith Institute, is calling on the Chancellor to scrap Stamp Duty altogether.
He said: ”Popular giveaways are usually to be avoided, but this year Philip Hammond has the opportunity to please both the public and hard-nosed economists.
“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.
“Whether he funds it by raising other major levies, fixing the regressiveness in our current property taxes, or finding some more spending cuts, Hammond should avoid tinkering and scrap the whole thing.”
Mr Hammond began his budget speech at about 12.30pm on Wednesday November 22, straight after Prime Minister’s Question Time in the House of Commons.