Unveiling their alternative budget, the Liberal Democrats are proposing raising Stamp duty thresholds should they win the General Election.

Their plans involve raising the Stamp Duty limit from £60,000 to £150,000. Such moves are aimed to help first-time buyers.

Both Labour and Conservative parties have said that the Liberal Democrats would struggle to find money to finance the £500m plan.

Stamp Duty Outline
In revealing their plans the Liberal Democrats outlined: “In recent years first time buyers have been squeezed out of the housing market by the large increases in house prices. It is essential that we start to make the housing market more accessible to these buyers. The Liberal Democrats recongise this need and propose to increase the stamp duty threshold from £60,000 to £150,000 to help first time buyers.”

Council Tax
Also outlined where proposals to abandon Council Tax and replace it with a Local Income Tax. “A Local Income Tax is based on the ability to pay. It would be run through the existing Inland Revenue Income Tax mechanism ? which will save millions of pounds ? while ensuring that the typical household and pensioner pay hundreds of pounds less.”

First time buyers are going to be a target in the upcoming election. All of the main political parties have outlined their plans to help first time buyers get onto the housing ladder.

A survey by Halifax in January 2005 reported that first time buyers are outpriced in 92% of market towns in the UK.

Lib Dem Treasury spokesman Vince Cable said: “Our tax system currently reinforces rather than mitigates inequality. The poorest 20% pay a higher percentage of their income in tax than the top 20%. People don?t want to pay more tax but they want it distributed more fairly.

That is why we advocate scrapping Council Tax and replacing it with Local Income Tax (LIT). The majority of households will benefit or face no change under our system. Families on average income will benefit by over £450.

That is also why we are lifting over 400,000 home-buyers, largely first time buyers, out of paying Stamp Duty.”
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