Chancellor Kwasi Kwarteng has recently announced that as of 23 September 2022 there will be a change in the amount of Stamp Duty Land Tax payable on a purchase transaction.
What has changed?
The new measure has increased the threshold for nil-rate tax to £250,000.00. The previous nil-rate tax band was £125,000.00. This means that you will not be liable for any Stamp Duty Land Tax for a property price under £250,000.00, (unless you already own another property and this is not being sold as part of the same transaction).
The nil-rate threshold for First Time Buyers has also increased to £425,000.00 from £300,000.00 and First Time Buyers will pay a reduced rate between the £425,000.00 – £625,000.00 band. This is a huge benefit to anyone coming to the market for the first time.
There is no deadline for these reductions as there was previously with the so called ‘Stamp Duty Holidays’. The new rates are now in place for the foreseeable future.
Different rates apply if this is a “second” property. Please contact Ellisons for further advice in this regard.
I am currently purchasing a property; will this benefit me?
In short, yes. The new measure means that every individual purchasing a property in England on or after 23 September will pay less Stamp Duty.
Why the sudden change?
The Government’s intention behind the recent measure is to stimulate the market and deal with any economic slowdown. Reducing the rates of SDLT will assist all buyers in their next purchase and will be particularly appealing to First Time Buyers who are struggling to get themselves on the housing market.
How can Ellisons help?
For most people, buying or selling their home is the largest financial transaction they will ever make, so it is important to get it right. Our Conveyancing Solicitors in Essex and Suffolk offer a wealth of experience and expertise in all aspects of residential property and are able to offer advice on SDLT.
Contact the Ellisons’ Residential Property team today on 01206 764477 or email us at enquiries@ellisonssolicitors.com.