The ‘mini-budget’ announced by the Chancellor introduced some changes to the thresholds at which Stamp Duty Land Tax (SDLT) becomes payable. These changes affect all residential purchases completing on or after 23 September 2022 in England.
The first change is the increase in price from which Stamp Duty becomes payable. This has increased from £125,000 to £250,000 meaning that for purchases where the price is less than £250,000 there is no stamp duty payable.
The rates and rules are different for first-time buyers, companies, overseas buyers and people buying a second or subsequent property, but they will benefit from the changes too.
The news for first time buyers is even better as there is no stamp duty on purchases up to a level of £425,000, an increase from £300,000. In addition, First-time buyers can also claim First Time Buyer Relief on the purchase of a main residence up to £625,000, increased from £500,000.
The Higher rate transactions remain in place for second homes which starts at a 3% additional charge, increasing through to 15% on transactions over £1,500,000. A 2% SDLT surcharge is also applicable for overseas buyers purchasing residential property. The surcharge applies to non-resident buyers regardless of the type of buyer (e.g. company or individual).
SDLT remains a complex tax subject. Often the SDLT can add a sizeable cost to property transactions, as ever it always pays to take the right advice.
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