Quealy & Co bring you the latest property market news following a Mini Budget on 23rd September. Chancellor Kwasi Kwarteng has outlined a series of tax cuts and economic measures in a shake-up of the UK’s finances.
The Chancellor has announced a cut to Stamp Duty by raising the threshold of how much a property costs before Stamp Duty is paid.
No change was announced for additional properties’ Stamp Duty surcharges.
The changes are effective immediately and the Government have stated it is permanent.
The changes to Stamp Duty are:
- The threshold of how much a property costs before Stamp Duty is paid has risen from £125,000 to £250,000.
- First time buyers will pay no Stamp Duty on the first £425,000. This has been raised from the previous £300,000 threshold.
- The limit in which first time buyers can claim relief has risen from £500,000 to £625,000
You pay stamp duty at these rates if, after buying the property, it is the only residential property you own. You usually pay 3% on top of these rates if you own another residential property. You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’):
- Up to £250,000 : ZERO
- From £250,001 to £925,000 : 5%
- From £925,001 to £1.5 million : 10%
- From £1.5 million :12%
In October 2022 you buy a house for £295,000. The SDLT you owe will be calculated as follows:
- 0% on the first £250,000 = £0
- 5% on the final £45,000 = £2,250
- Total SDLT = £2,250
More information on the Stamp Duty changes and information on Stamp Duty relief as a first time buyer can be found at gov.uk, where there is also a helpful Stamp Duty Land Tax Calculator. Click here.
What does this mean for the property market?
This is great news for those currently in the process of buying a property. If you currently have a property transaction going through, there is no need to delay in order to save money because the changes are available immediately.
It is estimated that these changes will lift 200,000 homebuyers out of paying the tax altogether every year. The Growth Plan also promised to release more Government land to support housebuilding and to remove planning restrictions to boost supply.
In his statement, Kwarteng said:
“Cuts to Stamp Duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.”
“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”
Do you have any questions about the changes to Stamp Duty?
If you are wondering how the changes to Stamp Duty will affect you in your moving journey, then please get in touch with our friendly team at Quealy & Co estate agents in Sittingbourne. we are ready to answer any questions you may have.
20 March 2022
1 in 5 homes snapped up in first week of marketing!
10 January 2022
10 FAQs when selling your home
16 May 2023