The First (Stamp Duty) Cut is the Deepest
On Friday 23 September 2022, the Chancellor of the Exchequer Kwasi Kwarteng delivered his (not so) mini budget. Amongst the measures announced is a permanent stamp duty holiday with the threshold for the standard rate of Stamp Duty Land Tax (SDLT) raised to £250,000.00. Our Head of Property answered your questions on how the cut will affect your purchase.
Stamp Duty Cut FAQs
- What does the new SDLT threshold mean for my purchase? Previously no SDLT was payable on the first £125,000.00 of the price under the standard residential rate. The new threshold means there will now be no tax payable on the first £250,000.00 of the price under the standard residential rate saving purchasers up to £2,500.00.
- When does the cut take effect? The changes take effect from Friday 23 September 2022. Unfortunately for people who purchase a house prior to this date the change is not retrospective and there will be no refund for anybody who bought a house prior to 23 September 2022.
- What about First Time Buyers? A first time buyer is somebody who has never owned a property previously either in the UK or abroad. A first time buyer is entitled to claim first time buyer’s relief. Prior to 23 September the relief meant no tax was payable on the first £300,000.00 on the purchase of a property for £500,000.00 or less. From Friday 23 September a first time buyer will not pay any tax on the first £425,000.00 on the purchase of a property for £625,000.00 or less.
- I have to pay a higher rate of Stamp Duty. Do the changes benefit me? Whilst the cut only relates to the standard rate of SDLT. Higher rates apply to people buying additional properties and to non-UK residents but these higher rates are applied on top of the standard SDLT rate.
Residential Property & Conveyancing Team
At Morrish Solicitors we understand that moving can sometimes be a stressful experience, but our friendly and professional residential property and conveyancing team will do everything we can to ensure that it is also an exciting and positive experience.
To enquire about our residential property and conveyancing services please call us on 033 3344 9600 or simply email [email protected] with your request.
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