The end of tax on home purchases? An important declaration was made on the Isles

The leader of the opposition Conservative Party, Kemi Badenoch, announced on Wednesday during the party convention in Manchester that if her party returns to power in Great Britain, it will abolish the tax on home purchases.

In her 45-minute speech, Badenoch focused primarily on criticism of the ruling Labor Party. The politician accused Prime Minister Keir Starmer of running a “weak and directionless” government that has left the country in a “terrible mess”.

As noted by the British media, the leader's statement that “the tax on civil law transactions is a bad tax” caused great surprise because it was kept secret. When she said the party would “help millions of people realize the dream of owning their own home” by introducing the tax change, the Tories gave her a standing ovation.

– We need to free our housing market because in a society where no one can afford to buy a house or move, there is no opportunity for social mobility – says Badenoch.

Currently, this tax is paid by home buyers in England and Northern Ireland for amounts above PLN 125,000. pounds. First-time home buyers are exempt from it for properties worth up to PLN 300,000. pounds. Buyers of homes worth more pay a percentage of their value.

The BBC reported that Finance Minister Rachel Reeves would consider abolishing the tax on civil law transactions in the budget, which will be voted on at the end of November. Badenoch had a different opinion on this matter and stated that the tax would increase significantly.

In the last financial year, it was estimated that the revenue from tax on civil law transactions was £13.9 billion, with a significant part of this amount coming from the sale of new homes and other buildings.

The BBC quoted estimates from the independent Institute for Fiscal Studies, which show that the abolition of stamp duty on real estate used as a primary residence could cost the British budget approximately £4.5 billion. The Tories themselves claim that the cost of this policy may amount to £9 billion.

Under the Conservative Party's plan, stamp duty would still apply on the purchase of a second home, property purchased by a company or buildings outside the UK.

In Scotland and Wales this fee does not apply as separate property taxes are levied here.

As Badenoch assured, her promise can be realized thanks to planned savings estimated at 47 billion pounds. At the beginning of the week, the party announced a policy of budget cuts that would affect social programs, foreign aid and the civil service.

The politician had already announced, among other things, the abolition of the carbon tax on electricity, increased police work in crime hotspots and the UK's withdrawal from the European Convention on Human Rights.

The Conservative Party is the main opposition party with 119 MPs in the 650-seat House of Commons. The ruling Labor Party has 401 seats and the right-wing Reform UK party has five seats.

From London Marta Zabłocka (PAP)

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