Tory plans on Stamp Duty welcome

In a speech at the launch of the report A New Economic Model: Eight Benchmarks for Britain last week, shadow chancellor George Osborne said that the proposals would mean that 90% of firsttime buyers will avoid paying Stamp Duty tax.

Currently, the Stamp Duty tax threshold is £175,000 and the Inheritance Tax threshold stands at £325,000.

Simon Webster, managing director of broker Facts & Figures, said raising the thresholds will help stimulate the market.

He said: “Raising the thresholds will be a massive benefit and will reassure many people. However, given the need for increased tax revenue, I am not sure it is appropriate right now. It might be better in a few years time because we actually need the tax to clear some of our deficit.”

In the report, Osborne also said the party will implement a new body, the Consumer Protection Agency (CPA), to replace the FSA.

Simon Jones, managing director at Savills Private Finance, said: “I feel that the change would be slightly unnecessary, as the FSA has a consumer focus and spends a lot of time on treating customers fairly.”