On Friday 23rd September Chancellor Kwasi Kwarteng announced his Growth Plan, which will tackle energy costs to help reduce inflation, support businesses and help households. Here are the changes being made;
Stamp Duty
Stamp Duty Land Tax (SDLT) is a tax that is paid whenever you purchase a house in England or Northern Ireland. Depending on the price of the house, will depend on the rate and the threshold for tax.
The government has announced they are cutting Stamp Duty Land tax for those purchasing a property. This means that people do not need to start paying Stamp Duty on the first £250,000 which has been doubled from the previous threshold.
This change in tax was made to help hard-working people keep more money that they've earned. Doubling the threshold should also enable up to 29,000 more people to move home each year. Allowing more people to move home each year, will help boost household consumption, which in turn will increase the confidence in the economy and help support jobs in the property market.
Standard Residential Stamp Duty Land Tax rates from 23 September 2022
Property Value | Standard Residential Rates |
|---|---|
£0 - £250,000 | 0% |
£250,000 - £925,000 | 5% |
£925,000 - £1,500,000 | 10% |
£1,500,000 + | 12% |
First-time buyers
To help buyers with buying their first house, the government is raising the Stamp Duty threshold. This is being increased by £125,000 meaning the previous threshold of £300,000 is being increased to £425,000. The maximum purchase price which qualifies for First Time Buyer's relief is also being increased from £500,000 to £625,000.
The government says this can help 200,000 more people buy a home without having to pay stamp duty.