Stamp Duty & the ‘mini budget’
4th October 2022
In his ‘mini budget’ speech on 23rd September 2022 Kwasi Kwarteng, Chancellor of the Exchequer, announced that there would be changes to Stamp Duty Land Tax (SDLT) for residential transactions, effective immediately. Mark Cooper, Conveyancing Solicitor explains the changes below.
The first change was to increase the price at which SDLT becomes payable. Prior to 23rd September 2022, the figure was £125,000.00, which was increased by the Chancellor to £250,000.00. Accordingly, and so long as only the standard rate of SDLT is applicable, a purchaser will pay no SDLT at all if they purchase for £250,000.00 or less. The bands are now as follows:
Up to £250,000.00 0%
From £250,001.00 to £925,000.00 5%
From £925,001.00 to £1,500,000.00 10%
Over £1,500,000.00 12%
The Chancellor also raised the price at which SDLT becomes payable for first-time buyers, from £300,000.00 to £425,000.00. The ‘first-time buyer’ relief is now applicable on properties with a value of up to £625,000.00 which is an increase from £500,000.00. That said it is still a requirement that the property is to be the first-time buyer’s main residence.
Given the cost of living crisis which is exacerbated by increasing interest rates, whilst the changes to SDLT are permanent and welcomed, time will tell as to whether they assist in keeping the housing market moving.