Chancellor Kwasi Kwarteng has confirmed a permanent stamp duty cut in the mini-Budget announced this morning.
The government is reforming stamp duty by doubling the level at which people begin paying this from £125,000 to £250,000.
This government is also committed to helping first-time buyers get on the property ladder. They are increasing the level first-time buyers start paying stamp duty from £300,000 to £425,000. In addition, they are allowing first-time buyers to access the relief when they buy a property costing less than £625,000 rather than the current £500,000.
These measures will reduce stamp duty bills across the board for all movers by up to £2,500 with first-time buyers able to access up to £11,250 in relief.
Table of potential savings
SDLT charge for standard home mover (£) | SDLT charge for standard home mover (£) | SDLT charge for first time buyer (£) | SDLT charge for first time buyer (£) | |||
Price (£) | As at 22 Sep 2022 | As at 23 Sep 2022 |
| As at 22 Sep 2022 | As at 23 Sep 2022 |
|
200,000 | 1,500 | 0 | 1,500 | 0 | 0 | N/a |
400,000 | 10,000 | 7,500 | 2,500 | 5,000 | 0 | 5,000 |
600,000 | 20,000 | 17,500 | 2,500 | 20,000 | 8,750 | 11,250 |
Property Value | Standard Residential Rates |
£0 – £250,000 | 0% |
£250,000 – £925,000 | 5% |
£925,000 – £1,500,000 | 10% |
£1,500,000+ | 12% |
