(Alliance News) - A temporary abolition of stamp duty on properties worth up to GBP500,000 has been supported by MPs, amid Tory calls to make the change permanent.
The Stamp Duty Land Tax (Temporary Relief) Bill cleared all stages in the Commons on Monday although it still needs to be examined by peers.
The legislation is focused on UK Chancellor Rishi Sunak's policy to remove stamp duty on the first GBP500,000 of purchases made by most home buyers in England and Northern Ireland between July 8 and March 31.
Interim authority for the change was granted last week, with the Bill allowing Parliament to debate it.
Treasury minister John Glen told MPs the move will inject "new confidence and certainty" into the housing market and help save buyers up to GBP15,000.
But Labour said the stamp duty holiday is "unnecessary" for second homeowners and the benefits will be "concentrated" in London and the South East.
Several of the 2019 intake of Conservative MPs suggested the government should go further with the change, with Greg Smith (Buckingham) proposing it should be made permanent.
Smith said: "This Bill is enormously welcome. It is bold in its aim of boosting our housing market and supporting people to achieve home ownership.
"And who knows, perhaps this tax-cutting pilot, once proved so successful, could become a more permanent feature of the housing market going forward."
Ben Spencer (Runnymede and Weybridge) went further, telling the Commons: "While I welcome these bold changes, I would ask my honourable friend if we could be even more, just a little bit more bold, and not just cut stamp duty, but scrap it entirely."
Rob Roberts, MP for Delyn, mooted extending the stamp duty holiday beyond March to encourage those who are not yet in the process of purchasing a house.
Felicity Buchan (Kensington) warmly welcomed the cut, adding: "Alongside some of my colleagues on these benches, I'd urge my right honourable friend to be bolder and broader and to look at a fundamental reform of stamp duty.
"Stamp duty is ultimately a tax on social mobility and aspiration."
Anthony Browne (South Cambridgeshire) said: "I urge the government to look at increasing over time – not now when we're in the middle of the financial crisis, but when we get back a bit to normality – increasing the rate for second home owners, make it a flat rate.
"There is no social-economic reason why people buying second homes or homes for investment should get discounted rates on lower value properties."
Treasury minister Jesse Norman was unmoved despite the ideas, saying of Spencer's proposal to scrap stamp duty: "I do always take it with an additional measure of credibility when colleagues come forward… with a specific suggestion for how the gap could be filled."
Earlier in the debate, shadow Treasury minister Dan Carden said: "We don't oppose the principle of additional support for home owners and buyers and actions to stimulate the housing market.
"Estate agent Savills identified the local authorities that will see the biggest fall in tax receipts as a result of the change – Wandsworth, Bromley and Wiltshire will see falls of GBP40 million, GBP35 million and GBP29 million respectively.
"But Rightmove estimate that the average saving in the North East will be just GBP646 compared to GBP15,000 in London.
"Once again the government seems to be prioritising the needs of London and the South East over those of the rest of the country."
source: PA
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