That is an interesting suggestion. At first blush, my mind goes immediately to the complexity of such a scheme, particularly given our proudly antique housing stock—certainly in my constituency, with beautiful farmhouses and market town high streets that are many, many hundreds of years old. I therefore think it unlikely—I will be honest with the hon. Gentleman—but he is always welcome to write to me. I will make this point: the Government’s very real progress over the last decade, on drastically cutting our carbon emissions, with the help of industry, homeowners and members of the public, should be acknowledged. Dare I say it, if it is not unparalleled across the world, we are certainly in the top few. What is more, we have tried, through measures such as VAT zero rating on energy-saving materials, to encourage homeowners and others to plug gaps and make their homes more energy efficient. So, I do not think stamp duty is the way to help, but certainly the Government have already put in place measures to try to help us meet our very, very ambitious climate targets.
The last few years have, frankly, been tough on us all and we want to help people take that next step in their lives to buy a new home. The Bill cuts stamp duty land tax for first-time buyers and other homeowners to reduce the upfront cost of moving home. It is because we want to help people as quickly as possible that the rates are already in force, helping our constituents.
The provisions in the Bill apply only to purchases of residential property in England and Northern Ireland, as land transaction taxes have been devolved to Scotland and Wales.
2.45 pm
The Bill contains two clauses. Clause 1 provides for the thresholds at which stamp duty land tax is due on residential property to be increased, with effect from 23 September 2022. That means the nil-rate threshold is being raised from £125,000 to £250,000. As a result of the change, 43% of transactions will pay no stamp duty whatever, boosting transactions and supporting the property market. For stamp duty land tax chargeable on leasehold transactions, the nil-rate threshold is also raised to £250,000. Because home ownership is a priority for the Government, the clause also amends the nil-rate threshold for first-time buyers, which increases from £300,000 to £425,000. First-time buyers will not pay a penny of stamp duty land tax on properties under £425,000. The
clause will also increase the maximum purchase value for which a first-time buyer can claim relief from £500,000 to £625,000. The changes mean that over 98% of first-time buyers in several regions will pay no stamp duty land tax whatever in several regions, including the north-east, Yorkshire and the Humber, the north-west, the east midlands and Northern Ireland. Over 60% of all purchases, including home movers in the north-east, will pay no stamp duty at all. Clause 2 simply names the Bill the Stamp Duty Land Tax (Reduction) Bill.
Government amendments 1 to 13 end the provisions in clause 1 on 31 March 2025, as announced to the House by the Chancellor on 17 November at autumn statement. As I said, the Chancellor has been very clear that the Government are committed to stability and fiscal responsibility. It is right that the provisions in the Bill remain in place over the next two years to help support the hundreds of thousands of jobs and businesses reliant on the property market during a difficult economic period. But as part of our commitment to getting debt falling in the medium term, the amendment will end the changes on 31 March 2025. From 1 April 2025, the thresholds will revert to their previous levels. Government amendment 12 includes transitional rules to support people who have substantially performed their purchase before the end of the temporary relief, but who complete after the 31 March 2025 end date.
Government amendments 13 and 14 amend clause 2 to rename the Bill the Stamp Duty Land Tax (Temporary Relief) Bill to reflect the sunset clause that will now end on 31 March 2025. The Bill comes into force on Royal Assent, but applies in relation to transactions with an effective date on or after 23 September 2022 until 31 March 2025. As a result of the resolution passed by the House of Commons under the Provisional Collection of Taxes Act 1968, the Bill’s provisions have been in force since 23 September 2022. Our constituents who have bought a home in the last few months have had the benefit of those reductions. We very much look forward to supporting homeowners, including first-time buyers, in the coming two years with the Bill.