Boris Johnson to abolish Stamp Duty for homes under £500k in no-deal Brexit scenario
Stamp Duty could be scrapped for all homes worth under £500,000 in an emergency Budget in September if Boris Johnson becomes the next UK prime minister and Britain exits Europe with no deal, according to reports.
Analysis from Yahoo Finance UK confirmed the move could save first-time buyers up to £10,000 on their first home and give buy-to-let landlords and second homeowners a £30,000 tax cut.
Johnson is also looking at reversing former chancellor George Osborne’s Stamp Duty hike on more expensive homes from 12 to seven per cent, according to The Times.
The Stamp Duty increases are widely seen to have cooled the London property market in recent years.
Three sources in his campaign told The Times he was considering an ‘emergency budget’ including Stamp Duty cuts, large tax breaks for business investment and an “assault” on regulation.
Brexit-fuelled price crash
However, the Bank of England has warned that house prices could crash by as much as 30% in a worst-case scenario, with Britain entering a serious recession.
Stamp Duty is a tax on property purchases. It is currently paid on the value of property higher than £125,000 for residential properties and £150,000 for non-residential properties and land.
Buyers currently pay a two per cent tax on the value of their main residence between £125,000 and £250,000, five per cent from £250,001 to £925,000, 10 per cent to £1.5m and 12 per cent for properties above that.
Higher taxes are paid on more expensive property bands, with 15 per cent the highest rate for second homeowners on the value of properties above £1.5m.