Chancellor Kwasi Kwarteng has officially announced a permanent cut to Stamp Duty Land Tax (SDLT) in his mini-Budget this morning, increasing the SDLT threshold from £125,000, to £250,000 – doubling the level at which the tax is introduced on a purchase.
Confirming the rumoured prediction that has been circling this week, Kwarteng has announced a permanent cut in Stamp Duty Land Tax that purchasers are responsible for paying on property purchases in the UK, by increasing the threshold from £125,000 to £250,000, and increasing the first-time buyer threshold from £300,000 to £425,000 is his mini-Budget this morning.
The SDLT cut is reported to prevent over 200,000 purchasers from paying the tax and providing further savings of up to £11,250 for first-time buyers and up to £2,500 for other purchasers. By doubling the nil-rate band, it is also predicted that over 29,000 more people will be able to purchase a property each year, boosting the number of property purchases in the UK and allowing purchasers to increase their budget for their purchase.
The new rates of Stamp Duty Land Tax in the UK are as follows:
|Additional rate for investors and second homes|
|Up to £250,000||0%||3%|
|Over £250,000 to £925,000||5%||8%|
|Over £925,000 to £1.5 million||10%||13%|
|Over £1.5 million||12%||15%|
To calculate your own Stamp Duty Land Tax, use our simple and easy calculator here.
To learn more about the benefits of investing in the UK property market, get in touch with one of our expert property consultants today.