Stamp Duty Land Tax is a tax that is paid when purchasing a property. The amount of tax payable is dependent on the value of the property.
On Friday chancellor Kwasi Kwarteng announced changes to residential Stamp Duty Land Tax with immediate effect.
What do the changes mean?
There will be no Stamp Duty Land Tax paid on the first £250,000 of a property purchase. This was previously charged on any figure above £125,000.
First time buyers will only pay Stamp Duty Land Tax on a property purchase over £425,000. This was previously charged on property above £300,000.
The value of the property first time buyers can claim relief against has increased to £625,000. This was previously £500,000.
No change has been announced for additional property Stamp Duty Land Tax surcharges (so Higher Rates on Additional Dwellings apply to purchases of additional property and are 3 percentage points above standard residential rates).
The changes apply to both freehold and leasehold property purchases.
The changes are with immediate effect, there has not been a deadline put on these changes as previously seen in the Stamp Duty Land Tax holiday.
If you have any questions regarding how these changes will impact on your ongoing purchase, please contact us on 01904 624903.