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Stamp duty is the money you pay to the taxman when you buy property or land in the UK worth over a certain value.

Stamp duty land tax in England and Northern Ireland on residential property has permanently been reduced  from 23 September 2022 and now are as follows:

0%: £0 – £250,000 (£425,000 for first time buyers)
5%: £250,000 – £925,000
10%: £925,000 – £1,500,000
12%: £1,500,000+

The government announced the stamp duty cut, as part of the mini-budget, to make purchasing property more affordable. Rightmove says visits to its house sales adverts jumped up to 10 per cent just after the mini-Budget. The minimum cost of a property on which homebuyers pay stamp duty in England and Northern Ireland has been raised from £125,000 to £250,000. For first-time buyers, this figure has increased from £300,000 to £425,000.

Previously, first-time buyers would only benefit from different stamp duty rates if the cost of the property they were buying was £500,000 or less. This amount has now increased to £625,000. If first-time buyers are purchasing a property greater than £625,000, they’ll pay the standard stamp duty rates.

This means first-time buyers could save a maximum of £6,250 on the purchase of their home, while everybody else could save up to £2,500.

These changes will make it more affordable for people to move house, and make it easier for many first-time buyers to get on the housing ladder.

 

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