New Stamp Duty Cuts 2022
This is a permanent cut to the Stamp Duty threshold of how much a property has to cost before stamp duty is paid. Before the announcement, one had to pay Stamp Duty on any property that cost more than £125,000. That threshold has now been increased to £250,000. Even better for first-time buyers, you will not be required to pay Stamp Duty on a property that costs £450k or less.
For properties purchased for between £250k and £925k, Stamp Duty will be 5% of the property cost. For properties between £925k and £1.5m, this will rise to 10%, and 12% for anything above £1.5m.
If you've recently had an offer accepted on a house, don't worry, you'll still be able to benefit from this new saving! Stamp Duty is only paid upon completion of a property sale, so you will pay the new percentage of tax according to the price of your property. Anyone buying a second home will also save this money (although they will still have to pay the additional 3% levy for second homes).
Liz Truss and the Chancellor Kwasi Kwarteng believe that cutting stamp duty will support economic growth by encouraging more people to move home or jump on the property ladder. Stamp Duty also decreases labour market elasticity as it curtails people from selling up and buying elsewhere, where the jobs are.
Overall, this new development is great news for anyone looking to move home in the next few months as it will save them up to £2,500 - money that could be used to make the house move easier!
If this cut to Stamp Duty tax has encouraged you to start searching for a home, browse our listings here.