The Welsh Conservatives tonight pledged to abolish stamp duty on the sale of all properties in Wales valued up to £250,000.
Home buyers currently pay 1% stamp duty on the purchase price of properties between £125,000 and £250,000, adding as much as £2,500 to the purchase price.
Powers to vary stamp duty levels are set to be transferred to Wales in the Wales Bill.
13,000 houses in the £125,000 to £250,000 stamp duty band were sold in Wales last year, with an average stamp duty bill of £1,600.
The cost of scrapping stamp duty for all property purchases at £250,000 and below is estimated at just over £20million.
No stamp duty is currently paid on properties sold below £125,000. The average property value in Wales is £166,722, which would be bought with a stamp duty bill of £1,667.
Paul Davies AM, Shadow Minister for Finance, said, “The Welsh Conservative Party believes in a low tax economy.
“Reducing taxes in Wales will help make our nation more entrepreneurial and prosperous.
“Buying a property is one of the most expensive times of your life, and putting on average £1,600 back in the pockets of homebuyers will be particularly welcome.
“Stamp duty is a regressive tax, which charges families, who want to own their own home, on their already taxed income.
“Evidence obtained by the Taxpayers’ Alliance suggests that a cut in stamp duty of 1% could increase market activity by 20%.
“By abolishing stamp duty on all properties up to a quarter of a million pounds, we are sending a clear message that Wales is an aspiration nation, where getting a foot on the property ladder is not out of reach and where low taxes can reward people who work hard.”
Andrew RT Davies AM, Leader of the Opposition, said, “This announcement shows that Welsh Conservatives are on the side of hardworking families in Wales and people who want to get on in life.
“The average property price in Wales is less than £170,000 so raising the stamp duty threshold to £250,000 will take thousands of hardworking families out of this regressive tax altogether.
“Unlike the lazy Labour government, Welsh Conservatives are eager to use new powers being transferred to Wales to grow the Welsh economy and put more money in the pockets of hardworking families.
“Together with our policies to revitalise the Welsh housing market by overhauling the right to buy, our pledge to abolish stamp duty is another shot in the arm of the Welsh housing market.”
