The Government is expected to reveal new plans this week that will exempt most homebuyers from paying any stamp duty, according to reports.

Several news outlets, including The Times, have suggested that Chancellor, Rishi Sunak, has drawn up proposals that would lift the threshold at which people start paying stamp duty from £125,000, to as much as £500,000.

Under current housing rules, homebuyers must pay Stamp Duty Land Tax (SDLT) if they buy a property or land over a certain price in England and Northern Ireland. The tax is different if the property or land is in Scotland or Wales.

The SDLT threshold currently sits at £125,000 for residential properties and £150,000 for non-residential land and properties.

MoneyAge recently reported that property consultant, Cornerstone Tax, had described stamp duty relief as a “poor tool for managing market behaviour” to boost the housing market, and instead suggested that government-backed purchase mortgage guarantees for borrowers would help to “reinstall confidence” in the lending market.

MHA MacIntyre Hudson, however, has recently argued that bringing down the stamp duty threshold would be an “important stimulus for the housing market”, and the chartered accountant suggested the Government needed to take immediate action on stamp duty to reassess the role of the property market in the UK economy.

The increase in the threshold, which The Times reported is expected to be implemented in the autumn budget, is a temporary measure intended to stimulate the housing market. Sunak is expected to announce the plans on Wednesday as part of several measures to support the economy.

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