The Chancellor, Kwasi Kwarteng, has announced Stamp Duty cuts in the mini-Budget, which are effective from midnight today (Friday, September 23rd 2022), stating “home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society.”
The Stamp Duty threshold for residential property has been raised from £125,000 to £250,000, meaning that purchasing a property at a price of £250,000 or less will not result in paying any Stamp Duty Land Tax (except for those who are buying a property as a second or additional home). For buyers purchasing property at a price over £250,000, stamp duty will only be paid on the part of the property price over £250,000.
There is also good news for first-time buyers: the threshold has also been increased from £300,000 to £425,000. Additionally, the maximum property value of the property on which first-time buyers can claim relief has also been increased from £500,000 to £625,000.
The Chancellor of the Exchequer said “cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots.”
The simple answer is no. The changes do not apply to second/additional properties and the higher rates of Stamp Duty still apply if the purchase will result in you owning more than one property and you are not replacing your main residence.
In general yes. Stamp duty is payable on completion of the property not exchange, although it is always best to speak with your Solicitor to confirm how these changes affect your individual property purchase.
Yes you will, as long as the property isn’t classed as a 2nd home or an additional property.
You can calculate any stamp duty you may have to pay when purchasing a property by using HMRC’s website.
As long as you are buying a property for under £625,000 you will pay no stamp duty on the first £425,000. The breakdown can be found on the governments website.
If you are buying or selling a property and would like a legal quotation, please contact us and we will be very pleased to assist you.
