The UK Government has announced that it is cutting Stamp Duty Land Tax (“stamp duty”) for those purchasing a residential property by doubling the level at which people begin paying this from £125,000 to £250,000.

First time buyers are receiving an extra helping hand. Previously, first time buyers who were purchasing a home priced at less than £500,000 would not pay stamp duty on the first £300,000. Following today’s announcement, the maximum house price to access the first time buyer stamp duty rates will increase to £625,000 and first time buyers will not pay stamp duty on the first £425,000.

How will the stamp duty reduction help you move?

Stamp duty in England is made up of different ‘bands’, the first being a nil rate. This means that you previously would not pay stamp duty on the first £125,000 of the value of your new home.

In September 2022, the UK Government announced a permanent increase to the nil rate band up to the first £250,000 of the value of your new home.

Property Value

Standard Residential Rates

£0 – £250,000

0%

£250,001 - £925,000

5%

£925,001 - £1,500,000

10%

£1,500,000+

12%

 

If you're buying an additional property you will pay 3% on top of the standard rate stamp duty.

How much will this save home movers?

These measures will reduce stamp duty bills across the board for home movers by up to £2,500. First time buyers may be able to save £11,250, meaning that buying your dream Cala home could be more attainable than you think.

The table below shows how much you could save.

 

 

Stamp duty for standard home mover (£)

Stamp duty for first time buyer (£)

Price (£)

As at 22 September 2022

As at 23 September 2022

Saving (£)

As at 22 September 2022

As at 23 September 2022

Saving (£)

200,000

1,500

0

1,500

0

0

n/a

400,000

10,000

7,500

2,500

5,000

0

5,000

600,000

20,000

17,500

2,500

20,000

8,750

11,250

 

Use the Government’s Stamp Duty Calculator to find out how much stamp duty you will pay.

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