Stamp Duty - September 2022
Stamp duty rates in England and Northern Ireland
In England and Northern Ireland, no stamp duty is due on the first £250,000 of a property (provided it's your main residence, it excludes additional properties) – though that threshold is £425,000 if you're a first-time buyer.
Stamp duty tax is not charged in Scotland, instead buyers pay Land Buildings Transaction Tax. Similarly, stamp duty is not charged in Wales where buyers pay Land Transaction Tax.
Here are the new stamp duty rates:
Rate on Main / Single Property (1)
Rate for Additional Properties (2)
Up to £250,000 (£425,000 for first-time buyers (3))
£250,001 – £925,000
£925,001 – £1,500,000
(1) Rate applies to that portion of the purchase price. (2) Additional properties bought for less than £40,000 will be charged the main residence rate of stamp duty. (3) The £425,000 first-time buyer stamp duty threshold does not apply if the property you are buying costs more than £625,000 – if it does, you'll pay the normal rate of stamp duty.
How much is Stamp Duty now in England?
The chancellor of the exchequer announced on 23rd September as part of the Government’s ‘game-changing’ Growth Plan a permanent cut to stamp duty tax payable on all property transactions up to the value of £250,000, in order to boost the economy.
Kwasi Kwarteng said stamp duty cuts, which apply to properties in England, would help get the housing market moving again and help first-time buyers put down roots.
He said: “Homeownership is the most common route for people to own an asset giving them a stake in the success of our economy and society, so to support growth, increase confidence and help families aspiring to own their own home I can announce that we are cutting stamp duty.”
He continued: ‘The steps we have taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty effective from today,’ he told the House of Commons chamber.
Under the new system the first £250,000 of a property’s value will be exempt, the buyers will pay 5% on the next £675,000 (£250,001 - £925,000) and 10% on the next £575,000 (£925,001-£1.5 million) and 12% on any value over £1.5 million.
And can you add the following after the paragraph about First-Time buyers:
You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one residential property unless you are replacing your main residence and that has already been sold .
Non UK Residents usually have to pay an additional 2% surcharge on top of the normal Stamp Duty Rates and companies have to pay 15% Stamp Duty on properties costing more than £500,000.
What is Stamp Duty?
When you buy a property or land, you usually pay tax on it. While often referred to as stamp duty, that's only the name in England and Northern Ireland – it's different in Scotland and Wales, where it's known as 'land and buildings transaction tax' and 'land transaction tax' respectively.
Stamp Duty Land Tax (SDLT) is a lump-sum tax that you must pay if you buy property or land over a certain price.
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