Stamp Duty: What has changed?
From 23 September 2022, stamp duty rates changed in England and Northern Ireland as the amount required to begin paying stamp duty was increased to £250,000.
Residents in Wales, where stamp duty is known as ‘land transaction tax’, are required to pay on purchases above £180,000.
What is stamp duty?
When you purchase a property or land, you are required to pay a form of tax called Stamp Duty Land Tax (SDLT). The amount you pay can depend on the price of the property, the location of the property, whether you’re a first-time buyer or whether you’re a UK resident.
What are the prices now?
Those that are familiar with the tax rates pre-Covid will recognise the tiers as they return to their original percentages. This means that if you’ve bought a property in England or Northern Ireland from 23rd September 2022, you’ll have to pay the following:
|
Property Value |
SDLT rate |
|
Up to £250,000 |
0% |
|
£250,001 - £925,000 |
5% |
|
£925,001 - £1,500,000 |
10% |
|
£1,500,001+ |
12% |
If you're a first-time buyer, you'll have to pay the following rates:
|
Property Value |
SDLT rate |
|
£0 - £425,000 |
0% |
|
£425,001 - £625,000 |
5% |
|
£625,001 - £925,000 |
8% |
|
£925,001 - £1,500,000 |
10% |
|
£1,500,001+ |
12% |
If you’ve bought a property in Wales from 1 July 2021, you’ll have to pay the following:
|
Property or lease premium or transfer value |
SDLT rate |
|
Up to £180,000 |
Zero |
|
£180,001 to £250,000 |
3.5% |
|
£250,001 to £400,000 |
5% |
|
£400,001 to £750,000 |
7.5% |
|
£750,001 to £1.5m |
10% |
|
£1.5m+ |
12% |
Paul Smith, CEO
Commenting on the mini-budget, CEO Paul Smith said: “I’m delighted that Liz Truss is following in the footsteps of Margaret Thatcher and understands the economy is fuelled by a healthy property market.
“Thatcher once said that she wanted a capital-earning democracy, which housing was the start of, and if you’re a man or woman of property, you’ve got something.
“I absolutely agree, and clearly the new Prime Minister does, too.
“This mini-budget from Chancellor Kwasi Kwarteng is revolutionary on stamp duty - cutting it permanently, and not just introducing a holiday with a spurious deadline, is a massive boost for the market.
“This will give a massive confidence boost for those now wishing to sell.
“I am also pleased to see that our hard-working colleagues will benefit from a cut in the basic rate of income tax to help them with the cost-of-living crisis – Spicerhaart is nothing without our brilliant people.”