Boris Johnson plans to cut stamp duty in no deal Budget

Ryan Bembridge

June 28, 2019

Boris Johnson plans to cut stamp duty on homes under £500,000 and reduce taxation in the super prime market in preparation for a no deal Brexit, The Times has reported.

Johnson, who is favourite to be the next Prime Minister, could reverse the stamp duty increase on expensive homes, which were increased by former Chancellor George Osborne from 7% to 12%.

He could also freeze regulatory changes affecting the housing market, like yesterday’s plans announced by Housing Minister James Brokenshire.

Johnson is looking to prepare an emergency Budget to prepare for a no deal Brexit in September, brought forward by October or November.

David Hollingworth, director of communication at L&C Mortgages, said: “The stamp duty change on sub-£500,000 properties could have benefits for not only first-time buyers but also downsizers at the end of their lifespan.

“With higher end properties you might say that it has been stymied by high stamp duty charges, though he runs the risk of being accused of favouring the wealthier in society.

“His supporters will not find anything to worry about in that but detractors will point to tax cuts for wealthier homeowners.”

Hollingworth went on to highlight a possible danger however.

He said people who are looking to buy in the price brackets affected by stamp duty changes may put their property searches on hold if the prospect of a no deal becomes more likely.

Boris Johnson is said to have offered home secretary Sajid Javid the role of Chancellor.

He has already proposed raising the 40p income tax rate from £50,000 to £80,000.

Hollingworth added: “In the event of a no deal he’s willing to put in place support measures that will try and keep the market moving, because a no deal would have implications for consumer confidence if nothing else.

“It’s pretty radical of course. It begs the question of what happens if there is a deal?

“Do we carry on as we are is there some kind of overhaul to be undertaken?”

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