Banks are calling for Stamp Duty reform in the upcoming Autumn Budget.
There may be expectations of tax rises when Chancellor Rachel Reeves delivers her first Budget on 30 October, but that hasn’t stopped calls for Stamp Duty cuts.
Banking trade body UK Finance has included Stamp Duty reform in its Budget submission to the Treasury.
It suggests that the current first-time buyer Stamp Duty threshold of £425,000 should be maintained rather than reduced, as planned, in April 2025.
Additionally, UK Finance is calling for Stamp Duty bands to be reviewed annually.
David Postings, chief executive of UK Finance, said: “The new Government has been clear that it is focused on delivering sustained economic growth, and financial services are vital in achieving that goal. The upcoming Budget is an important opportunity for the Government to set out a clear plan for the UK. In our submission, we have called on the government to not only introduce measures to bolster growth, but also a range of ideas to help support households and businesses up and down the country.
“As a vital part of the UK economy, financial services will play an active role in supporting growth and building a better society for all.”
The calls have been echoed by tax experts, who warn that rising house prices could end up hitting first-time buyers if property taxes rise.
Stevie Heafford, tax partner at HW Fisher, said: “We urge the chancellor to prioritise Stamp Duty in the next budget.
“If Labour is hoping to create a better property market, then it needs to prioritise support for first-time buyers and home buyers alike. With house prices rising and cost of living at an all-time high, the government should strongly consider extending the Stamp Duty tax relief provided to first-time buyers through the previous government.”