When buying a property, there are many costs to consider, including Stamp Duty Land Tax (SDLT). Stamp Duty Land Tax (SDLT) is a government tax that is charged when you buy a property or land over a certain price in England or Northern Ireland. The rate of Stamp Duty you pay also depends on the type of property, whether it is residential or non-residential /mixed-use, and whether you are a first-time buyer. The threshold was set at £125,000 for residential properties and £150,000 for non-residential properties. However, as part of a wider set of economic measures aimed at easing inflation, Chancellor Kwasi Kwarteng announced on 23rd September that the government will double that to £250,000, effective immediately.
As a commitment to get more people on the property ladder, the threshold will also increase from £300,000 to £425,000 for first-time buyers. This means that anyone buying a property under £250,000 and any first-time buyers buying a property under £425,000 will not have to pay stamp duty tax. Additionally, the value of the property on which first-time buyers (FTB) can claim stamp duty relief has been increased from £500,000 to £625,000.
The chancellor said in the House of Commons: “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.”
Kwasi has suggested that this permanent cut will mean 200,000 more people will be taken out of paying stamp duty altogether each year.
What are the new SDLT Rates?
The new rates are now:
- 0%: £0 – £250,000 (£425,000 for first time buyers)
- 5%: £250,000 – £925,000
- 10%: £925,000 – £1,500,000
- 12%: £1,500,000+
The Government’s Stamp Duty Land Tax SDLT calculator can be used for property purchases that are:
- for first-time buyers
- replacing main residence
- additional property
- residential or non-residential
- freehold or leasehold
- for non-UK residents purchasing residential property
You can find out more information on the recent changes here:
Conveyancing Solicitors London
Our highly experienced conveyancing solicitors in London advise on and deal with all legal aspects of residential property law with a firm commitment to providing the highest quality service.