Conservative MPs on scrapping stamp duty for some

The Free Enterprise Group claims that middle-income households need more help to improve standards of living and that the government can make more efficiencies. It is proposing a £15.79bn package of tax cuts. As well as the stamp duty plan, raising the earnings threshold for higher-rate income tax to £50,000 a year is the primary focus of the group's Conservative MP members.

The Free Enterprise Group claims that middle-income households need more help to improve standards of living and that the government can make more efficiencies. It is proposing a £15.79bn package of tax cuts.

As well as the stamp duty plan, raising the earnings threshold for higher-rate income tax to £50,000 a year is the primary focus of the group's Conservative MP members.

The FEG presents the following as options for making up the shortfall caused by the cuts:

  • Ending the ring-fencing of education and health from spending cuts
  • Halving the number of government departments
  • Abolishing housing benefits for under-25s

Treasury Committee chairman Andrew Tyrie and environment minister George Eustice are amongst the group’s supporters.

Stamp duty is payable on the purchase of a property and currently kicks in when a property is valued at and above £125,001, being charged at an initial rate of 1%. This increases to 3% on homes worth £250,001 and above and 4% on those worth £501,000 or more. The rate is payable on the property’s total value.

The Free Enterprise Group said:

"Stamp duty is a notoriously inefficient tax. Abolishing the 1% and 3% bands would cost £2.4bn, and ensure it only kicked in for properties worth more than £500,000. This is more than double the average house price, and even higher than the average in Greater London."

The Conservative MPs' call is the answer to the Liberal Democrat policy of introducing a "mansion tax" on properties worth more than £2m.

At his monthly press conference, the party's leader, Nick Clegg, said it was a "fair" and "rational" proposal.

He asked: "Why should a family in a £700,000 house in Lewisham pay the same in tax as someone in a vast palace worth several million pounds?"

Mr Clegg criticised Conservatives who did not want to ask the wealthy "to pay a bit extra".

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