Richard Fuller
Main Page: Richard Fuller (Conservative - North East Bedfordshire)Department Debates - View all Richard Fuller's debates with the HM Treasury
Stamp Duty Land Tax (Reduction)
Richard Fuller Excerpts(1 year, 6 months ago)
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The Economic Secretary to the Treasury (Richard Fuller)
I beg to move, “TABLE A: RESIDENTIAL Part of relevant consideration Percentage So much as does not exceed £250,000 0% So much as exceeds £250,000 but does not exceed £925,000 5% So much as exceeds £925,000 but does not exceed £1,500,000 10% The remainder (if any) 12%” “TABLE A: RESIDENTIAL Part of relevant consideration Percentage So much as does not exceed £250,000 3% So much as exceeds £250,000 but does not exceed £925,000 8% So much as exceeds £925,000 but does not exceed £1,500,000 13% The remainder (if any) 15%” “TABLE A: RESIDENTIAL Rate bands Percentage £0 to £250,000 0% Over £250,000 1%” “TABLE A: RESIDENTIAL Part of relevant consideration Percentage So much as does not exceed £425,000 0% Any remainder (so far as not exceeding £625,000) 5%”
That—
(1) Part 4 of the Finance Act 2003 is amended as follows.
(2) In section 55(1B) (amount of stamp duty land tax chargeable: general), for Table A substitute—
(3) In Schedule 4ZA (higher rates of stamp duty land tax for additional dwellings etc), for the Table A in section 55(1B) mentioned in paragraph 1(2) substitute—
(4) In Schedule 5 (amount of SDLT chargeable in respect of rent), in paragraph 2(3), for Table A substitute—
(5) In Schedule 6ZA (relief for first-time buyers)—
(a) in paragraph 1(3), for “£500,000” substitute “£625,000”, and
(b) for the Table A in section 55(1B) mentioned in paragraph 4 substitute—
(6) The amendments made by this Resolution have effect in relation to land transactions the effective date of which falls on or after 23 September 2022.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The former Chancellor of the Exchequer announced cuts to stamp duty land tax on 23 September, with a motion moved following debate on the economic statement to implement that on a temporary basis. This resolution now confirms the House’s agreement to that motion, allowing the Government to introduce a full Bill to implement the changes permanently. The Government’s changes to stamp duty increased the nil-rate threshold for all purchases of residential property in England and Northern Ireland from £125,000 to £250,000. For first-time buyers, the nil-rate threshold has increased from £300,000 to £425,000, with the maximum property price for which first time buyers’ relief can be claimed increased from £500,000 to £625,000.
This resolution is simply a procedural requirement. It is needed to allow the Government to introduce a Bill amending stamp duty land tax legislation. We will come on to the substance of the Bill on Second Reading in just a moment. Furthermore, there will be an opportunity to discuss the line-by-line detail of the Bill in Committee at a later point.
Richard Fuller
I listened with interest to the shadow spokesperson, the hon. Member for Ealing North (James Murray), who seemed to be using up all his greatest hits of criticism ahead of Second Reading, so I am not sure what he will say when we come to that. We always look forward to hearing Labour Members talk to us about the economy—they did such a good job with it last time they were in power.
Let me turn, more constructively, to the amendment tabled by the hon. Member for Westmorland and Lonsdale (Tim Farron). His concerns come from a good place. I have had the privilege of listening to him, on the Front and Back Benches, talk about this issue and the impact on his constituents. I know that he comes from a good place and not, as he said, from the politics of envy.
Steve Double (St Austell and Newquay) (Con)
As the Minister will know, there is a lot of concern on the Government Benches about the proposal’s impact on second homes and holiday lets, and there will be a lot of sympathy for the amendment from the hon. Member for Westmorland and Lonsdale (Tim Farron). Last week, the Chief Secretary to the Treasury gave me an assurance that the Treasury was looking at this issue. Will the Minister reaffirm that the Treasury understands that this is an issue and that we will look at how we can address it as the Bill progresses through the House?
Richard Fuller
My hon. Friend is absolutely right. He echoes some of the points made by the hon. Member for Westmorland and Lonsdale about the broad range of opportunities to address the issue, because there are such wide-ranging effects. The purpose of the amendment, however, is to create a separate schedule of rates in the stamp duty land tax system for those purchasing an additional property. That would mean that the purchase of additional property would not be included in the scope of the resolution or the ensuing Bill.
The Government already have higher rates for additional dwellings, which were introduced in 2016 and which apply a 3% surcharge to the standard residential rates of stamp duty. That surcharge will continue to apply. This means that, although the Government’s changes to stamp duty will ensure that around 43% of transactions will pay no stamp duty land tax, none of those will be purchases of second homes or investments in buy-to-let properties. The Government have taken meaningful action to support local communities on second homes. I assure my hon. Friend that we will continue to look at that.
Selaine Saxby (North Devon) (Con)
I reiterate the concerns raised by my hon. Friend the Member for St Austell and Newquay (Steve Double). Would it be possible to meet the Treasury team as the Bill progresses to ensure that coastal communities such as mine in North Devon do not continue to be blighted by the march of second homes?
Richard Fuller
I am always happy to engage with colleagues across the House. As I was saying, the Government have taken meaningful action on a range of issues, most recently through the Levelling-up and Regeneration Bill, which will introduce a council tax second homes premium.
Tim Farron
I am grateful to the Minister for the tone of his response, but I am disappointed that it looks as though he will not accept my amendment, not least because it lays the ground to take seriously the points made by the hon. Member for St Austell and Newquay (Steve Double) about proactively tackling excessive second-home ownership and holiday lets. We need to do something now at least to not make the situation worse, and I fear that, unamended, the Minister’s proposals will make things worse. We have been trying to amend the Levelling-up and Regeneration Bill in Committee so that there are measures that can control, through planning, the number of second homes and holiday lets in communities such as mine, but we have had no success so far. Will he meet me and others who are concerned to look at how we can table amendments and make proposals through the Treasury that would make a material difference to communities such as mine?
Richard Fuller
As I said to my hon. Friend the Member for North Devon (Selaine Saxby), I am very happy to engage with the hon. Member for Westmorland and Lonsdale about this issue, but I say again that there are multiple ways in which we can deal with these issues through different aspects of Government. I hope that he will take this up with other Departments as well, and I urge him to withdraw his amendment.
Question put, That the amendment be made.