Nicoll Financial Solutions Limited

The recent recovery in the property market has been given further impetus, after Alistair Darling confirmed the introduction of a new stamp duty holiday for first time buyers in yesterday's Budget. For the next two years, homebuyers taking their first step onto the property ladder will pay no stamp duty on properties worth up to £250,000 in a move the Chancellor claimed will benefit nine out of ten first time buyers. A rise in the duty payable on properties worth more than £1 million to 5% from April next year will help fund the initiative. Amongst the other announcements made by the Chancellor, savers received some much needed support, after it was revealed that the ISA allowance is to increase each year in line with inflation. The current limits are already set to rise for all savers to £10,200 from 6 April this year. The rumours were also confirmed that basic bank accounts are to be made available to everyone in the UK, a move expected to be of benefit to more than one million people over the next five years. In terms of the banking industry, Mr Darling said the Treasury had already received more than £8 billion in return for the support it had provided in the form of bail outs, while a further £2 billion had been raised by the 50% tax on bankers' bonuses. The introduction of an internationally co-ordinated tax on banks also received the Chancellor's backing.