Who is likely to be affected

Purchasers of residential property in England and Northern Ireland.

General description of the measure

This measure increases the amount that a purchaser can pay for residential property before they become liable to Stamp Duty Land Tax (SDLT), while maintaining the higher rate of 3% on additional dwellings.

The measure increases the residential nil-rate tax threshold from £125,000 to £250,000.

The nil-rate threshold for First Time Buyers’ Relief is increased from £300,000 to £425,000 and the maximum amount that an individual can pay while remaining eligible for First Time Buyers’ Relief is increased to £625,000.

The measure means that all individuals purchasing residential property on or after 23 September 2022 will pay less or no SDLT. This will continue for the foreseeable future which is fantastic news for buyers and agents alike.Be aware, second-home and investment purchases are still liable for SDLT. 

 

STAMP DUTY RATES UNDER THE NEW SYSTEM
Band	Stamp duty land tax rate	Additional rate for landlords / second homes
First-time buyers pay 0% to £425,000 then normal rates apply
£0 - £250k	0%	3%
£250,001 - £925k	5%	8%
£925,001 - £1.5m	10%	13%
£1.5m +	12%	15%
* No stamp duty is paid on property transactions costing less than £40,000 as these are considered low value and not reported to HMRC

 

How much stamp duty would you pay now?

Average £270,000 home: £1,000 - saving £2,500

£350,000 home: £5,000 - saving £2,500

£450,000 home: £10,000 - saving £2,500

£500,000 home: £12,500 - saving £2,500

£750,000 home: £25,000 - saving £2,500

£1,000,000 home: £41,250 - saving £2,500

 

If you would like more information on the Stamp Duty cut, speak to us today.