Stamp Duty Cuts: Help for first-time homebuyers?
Stamp duty land tax will be cut, as part of Chancellor Kwasi Kwarteng announcement today.
The limit at which individuals start paying stamp duty has been raised from £125,000 to £250,000 as part of the government’s overhaul of the system.
Additionally, this administration is devoted to providing two alternatives for first-time homebuyers to climb the property ladder. Initially, stamp duty rates were raised from £300,000 to £425,000 for first-time purchases and instead of the current cap of £500,000, the government is now allowing first-time purchasers to take advantage of the relief when they purchase a property for less than £625,000.
With first-time purchasers eligible for up to £11,250 in relief, these reforms will lower stamp duty costs for all movers by up to £2,500 overall.
Kwarteng has also announced:
- There will be long term reform of the planning system outlined by the Levelling Up and Housing Secretary in the coming weeks in order to boost housing supply. And in addition to that there will be an accelerated release of government-owned land;
- In the near future, particular investment zones will be designated for quicker growth with tax reliefs up to ten years, as well as no stamp duty for certain commercial and job-creating firms in such zones;
This is a permanent measure and will apply only in England and Northern Ireland.
Stamp duty is not charged in Scotland, instead home purchasers pay Land and Buildings Transaction Tax, with rates set by the Scottish government.
In Wales, homebuyers pay Land Transaction Tax instead, but only on properties costing more than £180,000, this remains the same.
If you are considering selling or buying a property after these changes, feel free to get in touch with us here.