On 23rd September 2022, the UK Government announced permanent cuts to Stamp Duty for both first-time buyers and non-first-time buyers, effective immediately.
Here's what you need to know about Stamp Duty and how these changes will affect you.
First things first, Stamp Duty Land Tax (SDLT) is a tax charged by the Government when you buy a property in the UK. Here's what you need to know about Stamp Duty and how these changes will affect you.
The amount of Stamp Duty you pay is dependent on the value of the property you purchase, and this is where the changes have been made.
There are different thresholds for first-time buyers and non-first-time buyers with regards to when Stamp Duty becomes payable, and the recent Government changes have increased these thresholds.
For non-first-time buyers, there is now no Stamp Duty to pay on house purchases up to £250,000 – this has been increased from £125,000.
The table below shows the applicable Stamp Duty rates for non-first time buyers on purchases above £250,000.
As an example, if you were to purchase a home for £350,000, your Stamp Duty would be calculated as follows:
0% on the first £250,000 = £0
5% on the final £100,000 = £5,000
Total Stamp Duty payable = £5,000
Before the Stamp Duty changes, this would have been calculated as:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £100,000 = £5,000
Total Stamp Duty payable = £7,500
For first-time buyers, there is now no Stamp Duty to pay on house purchases up to £425,000 – this has been increased from £300,000.
The table below shows the applicable Stamp Duty rates for first-time buyers on purchases above £425,000.
If the purchase price is over £625,000, first-time buyers cannot claim Stamp Duty relief and the rates would be the same as those for non-first-time buyers.
You can find out more about Stamp Duty and calculate how much you would need to pay based on a specific property price on the Gov UK website.
If you have any questions about any of our new homes, please call us on 0333 034 1355 or email sales@homesbycarlton.com.