At the mini budget on the 23rd of September 2022 the Chancellor announced cuts to stamp duty land tax (SDLT). They’ve done this by:
• Increasing the level at which people begin paying SDLT from £125,000 to £250,000.
• increasing the level first-time buyers start paying stamp duty from £300,000 to £425,000.
• Allowing first-time buyers to access the relief when they buy a property costing less than £625,000 rather than the current £500,000.
From the 23rd of September 2022 SDLT will be as follows:
|Property value||Standard residential rate|
|£0 – £250,000||0%|
|£250,000 – £925,000||5%|
|£925,000 – £1,500,000||10%|
The SDLT changes only apply in England and Northern Ireland. Stamp duty is not charged in Scotland, instead home purchasers pay Land and Buildings Transaction Tax, with rates set by the Scottish Government. Stamp Duty is also not charged in Wales, where purchasers pay Land Transaction Tax, with rates set by the Welsh Government.