Following Chancellor Kwasi Kwarteng’s mini budget on 23 September 2022, the Government is cutting Stamp Duty Land Tax (SDLT) with the aim of driving economic growth. It has since published a Factsheet outlining how the changes will affect homebuyers.
Reduction in SDLT
For all purchasers of residential property, the government has cut SDLT by raising the level at which SDLT is charged from £125,000 to £250,000 and it has introduced greater assistance for first time buyers.
How do the SDLT changes help first time buyers?
For first time buyers (FTBs), the Government has introduced measures to assist more people in getting onto the property ladder. The level FTBs start paying SDLT has been raised from £300,000 to £425,000. Furthermore, FTBs can access the relief if they buy a property for less than £625,000 – the level before this change was £500,000.
Benefit for House Buyers
The Government has estimated that as a result of these measures, SDLT will be reduced for all residential property purchasers by up to £2,500 with FTBs apparently being able to access relief of up to £8,750.
Stamp Duty Land Tax update
For more information about the recent updates to SDLT, here is a link to the Government’s Stamp Duty Land Tax Factsheet – GOV.UK (www.gov.uk)
For further information, if you are looking to buy your first home or carry out a residential property transaction, please contact the Muscatt Black Graf team. Call us on 0207 586 1141, email email@example.com, or fill in our online contact form.
This blog was prepared on 7 September 2022. It is not intended to be advice and should not be relied upon as such.