Stamp Duty is a tax you pay if you buy a residential property or a piece of land in England or Northern Ireland over a certain price. The price is set by the government.
The amount you are due to pay depends on when you bought the property and how much you paid for it. Stamp Duty Land Tax (SDLT) only applies to properties over a certain value.
The Chancellor of the Exchequer, Kwasi Kwarteng, announced a change to Stamp Duty rates on 23rd September 2022. The starting threshold for paying Stamp Duty has been increased from £125,000 to £250,000. Homebuyers will not have to pay stamp duty on the first £250,000 of any property purchase. The new tax tiers for amounts above the threshold will be as follows.
This is a person who is purchasing their only or main residence and has never owned a property in the UK or abroad.
First-time buyers will pay no Stamp Duty on properties up to £425,000. For properties up to £625,000 they will pay a discounted rate. They will pay no stamp duty up to £425,000 and then 5% Stamp Duty on the amount above £425,000 up to £625,000.
For properties over £625,000 the first-time buyer would no longer be classed as a first time buyer and would have to pay the standard rates of Stamp Duty. They will not qualify for first-time buyer’s relief.
Those buying an additional property or a second home will pay an extra 3% in Stamp Duty on top of the standard rates.
Written by: Nwabisa Janda
03 October 2022
Copyright © 2022 | All rights reserved.
Ascot Wealth Management Limited is authorised and regulated by the Financial Conduct Authority reference number 551744.
Ascot Wealth Management Limited is a registered limited company. Company Number: 07428369
