Stamp Duty Land Tax (SDLT) threshold increased to £250,000
Chancellors always like to pull rabbits out of the hat and make surprise announcements at the end of their Budget speech.
Although rumoured in the run up to this mini-budget, the SDLT announcement was still a surprise as house prices have been steadily rising. Increases in mortgage rates are likely to slow the market so the SDLT announcements are designed to stave off a housing slump.
In the mini-budget the government announced the following changes to the rates of SDLT.
For residential property transactions completed on or after 23 September 2022;
- The Nil Rate Band (NRB) has been increased from £125,000 to £250,000 and the previous 2% SDLT band has been abolished.. This will lead to a saving of up to £2,500 for those who are not first time buyers. For instance, an individual purchasing a replacement main residence for £400,000 would have previously paid £10,000. Post 23 September 2022 the SDLT due would amount to £7,500.
- The NRB for first-time buyers has been increased from £300,000 to £425,000. This applies where first-time buyers purchase a property costing less than £625,000 (previously £500,000).
Different taxation rules apply to property transactions in Scotland and Wales and no changes have been announced in this regard.
For more information on this, please contact Joe Wilson on 023 8046 1237.