Last week, the Chancellor Kwasi Kwarteng announced cuts to Stamp Duty Land Tax (SDLT) in his mini-budget. The cuts are effective immediately (23rd September 2022) and will be a permanent cut, intending to create stability within the housing market.
The cuts will only affect residential property, with the aim of helping more people get onto the property ladder, particularly first time buyers. With rising house prices, it means more people could buy a home and own an important asset.
The key changes with the new SDLT cuts are as follows:
- No SDLT to pay on the first £250,000 of the property price (previously £125,000).
- First time buyers will not have to pay SDLT on the first £425,000 (previously £300,000).
- First time buyers can claim relief on £625,000 (previously £500,000).
The deadline for paying SDLT is still within 14 days of the date of completion of a transaction (or substantial performance of contract) for England and Northern Ireland.
B P Collins LLP will be able to advise you on property transactions and how the new SDLT cuts will affect these. Please contact our property department if you would like further information on enquiries@bpcollins.co.uk or call 01753 889995.
