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MPs call for stamp duty threshold to rise to £500,000

20 Nov 2013

A group of Conservative MPs has called for the stamp duty threshold to be raised to £500,000, together with an increase in the higher rate income tax threshold.

Stamp duty is currently payable at an initial rate of 1% on residential properties worth more than £125,000, and rises in a series of stages to a maximum of 7% for properties worth over £2m.

However, the Free Enterprise Group believes that the tax should be scrapped for all properties worth less than £500,000.

Recent reports suggest that many middle-income households are at risk of tripping into the 3% stamp duty band as a result of recovery in the UK housing market.

The organisation is also urging the Government to raise the higher rate income tax threshold, over which income is taxed at 40%, from £32,011 to £50,000.

The group has also called on Chancellor George Osborne to freeze business rates for a period of three years, echoing the calls of many business groups in their submissions to the Chancellor ahead of the 2013 Autumn Statement on 5 December.