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Stamp duty cuts: what it means for home buyers

As part of today’s mini-budget announcement, new Chancellor Kwasi Kwarteng announced a reduction in stamp duty.

The news came amid other announcements that included income tax cuts and the scrapping of a proposed increase in national insurance.

Speaking in the House of Commons, the chancellor explained that the reduction in stamp duty is not a temporary measure. .

He said: “Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society.

“This is a permanent stamp duty reduction effective from today.”

It is hoped that stamp duty cuts will enable more people to buy their own homes.

What is stamp duty?

Land Tax (SDLT) must be paid when you buy land or property worth more than a certain amount in England and Northern Ireland.

In Scotland the tax works differently and you will need to pay what is known as Land and Buildings Tax.

The amount of SDLT you pay depends on what the land/property is used for, such as whether it is residential, non-residential or mixed.

SDLT must be paid to HMRC within 14 days of the completion of the move.

What does the change in stamp duty mean?

The change to stamp duty means that the level at which home buyers will have to pay property tax has risen.

This will double from £125,000 to £250,000, while first-time buyers will get a boost as they will only need to pay stamp duty on properties worth £450,000, rather than the previous limit of £300,000 sterling.

When does the reduction in stamp duty come into effect?

The chancellor has announced that the reduction in stamp duty comes into effect immediately, so anyone who is already buying a home and is subject to property tax can benefit from the changes.

https://www.farminglife.com/read-this/chancellor-kwasi-kwartengs-stamp-duty-cut-what-does-it-mean-for-home-buyers-and-when-does-it-come-into-effect-3854342 Stamp duty cuts: what it means for home buyers

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