Last week, the government made headlines with an announcement believed to bring much-wanted change into the property market. As part of his controversial ‘mini-budget,’ Chancellor Kwasi Kwarteng made amendments to the Stamp Duty Land Tax by raising the level at which it is paid.
Changes to SDLT as we know it
As of Friday 23rd September 20220, the Chancellor has raised the SDLT threshold from £300,000 to £425,000 for first-time buyers and from £125,000 to £250,000 for everyone else. This means that first-time buyers (FTB) with properties under £425,000 and property owners purchasing properties under £250,000 will NOT pay SDLT.
With these recent changes, Chancellor Kwarteng believes that 200,000 people will be relieved from paying stamp duty on their home purchases, benefiting the housing market and the broader economy. Additionally, the value of properties at which first-time buyers will be able to claim stamp duty relief has also increased from £500,000 to £625,000, meaning that buyers purchasing a property valued at £500,000 will now be paying £12,500 instead of the previous £15,000
With the new changes in place, the stamp duty on residential properties in England is as follows:
- 0%: £0 – £250,000 (£425,000 for FTBs)
- 5%: £250,000 – £925,000
- 10%: £925,000 – £1,500,000
- 12%: £1,500,000+
Interested in seeing the exact figure you will be charged for your property purchase?
Head over to the Stamp Duty Land Tax (SDLT) Calculator
For more information about the updates to SDLT, including how the changes are set to grow the economy, read the government’s Stamp Duty Land Tax Factsheet.
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