The minimum rate of stamp duty should stand at £215,675 if pegged to property price inflation since it was introduced.

The nil band of the tax was set at £125,000 in 2006, so the majority of households could move tax free at the time.

However these days a far greater proportion would be affected thanks to house price inflation in the 18 years since.

The analysis comes from Hamptons ahead of tomorrow’s Autumn Budget, in which it’s speculated that the government will allow the currently elevated stamp duty thresholds to expire.

If this happens, on 1 April next year the minimum stamp duty rate will fall from £250,000 to £125,000; and the first-time buyer threshold will go down from £425,000 to £300,000. This change would result in first-time buyers facing a potential tax increase of over £11,000.

Help to Buy

Hamptons appeared to call for the reintroduction of a scheme similar to the Help to Buy Equity Loan, which was introduced in 2013 and allowed buyers to purchase new builds with a 5% deposit, with the help of an equity loan supplied by the government. It ran until 2023.

While Help to Buy achieved its aims in providing a route for first-time buyers to get on the housing ladder, it has been widely blamed on stoking house price inflation.

Tax changes

It’s thought that Capital Gains Tax is likely to be left alone, despite earlier rumours that Chancellor Rachel Reeves would implement a hike.

It seems likely Inheritance Tax will be increased however, which Hamptons suggested could lead to a rise in older households gifting money, rather than passing it on in their wills.

This is more likely to impact households in the South of England, where property prices are higher.

Inheritance Tax is charged at £325,000 on estates worth over £325,000.

Via @PropertyWire