PARLIAMENTARY WRITTEN QUESTION
Stamp Duty Land Tax: Greater London (18 August 2021)

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of increasing the allowance for stamp duty tax relief for those living in London, in the context of higher average house prices in that city.

Asked by:
Marsha De Cordova (Labour)

The nil rate band (the price threshold at which SDLT becomes payable) is set at £125,000 outside of the SDLT holiday.

In 2017, the Government increased the price at which a residential property becomes liable to SDLT to £300,000 for first-time buyers; this means that over 70% of first-time buyers will pay no SDLT at all. First-time buyers purchasing houses worth between £300,000 and £500,000 save £5,000, outside of the SDLT holiday.

SDLT rates and thresholds apply consistently across England and Northern Ireland. Introducing regional variations in the nil rate band could create distortions in the housing market, be complex to achieve and be confusing for taxpayers.

Answered by:
Jesse Norman (Conservative)
10 September 2021