Tories to scrap Stamp Duty for first-time buyers

The Conservative party will take Labour's policy on first-time buyer Stamp Duty a step further, and abolish the tax on property purchase up to £250,000 indefinitely.

Labour announced the new threshold for first-time homebuyers in its Budget last month, but imposed a time limit of two years, after which it plans to re-introduce Stamp Duty, charged at 1%, at the former threshold of £125,000.

David Cameron announced the pledge to help first-time buyers by removing the tax permanently as part of the Conservatives’ manifesto.

Other tax breaks revelaed in the manifesto include freezing council tax for two years, reducing Labour's 1% national insurance tax rise to 0.5%, cutting the main rate of corporation tax and reducing tax on small businesses.

The Tories also want to implement their long-standing plan to increase the inheritance tax threshold to £1m.