What Are The Latest Stamp Duty Changes?
‘What are the latest stamp duty changes?’ Timms Conveyancer Katie Holmes discusses how this could affect you in her latest blog…
Stamp duty is a tax paid to the government upon the purchase of a property. The rules have become more complex in recent times but, to put it simply, the amount of tax payable depends on the cost of the property you are purchasing. Chancellor Kwasi Kwarteng announced in the mini-budget on 23rd September 2022 that the price at which stamp duty is paid has doubled from £125,000 to £250,000. This means that the rates are now 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+
Furthermore, the discount for first-time buyers now applies to properties costing up to £625,000, which is increased from £500,000.
Stamp Duty Changes – September 2022
For example, if you are purchasing a property for less than £250,000 you will not have to pay any stamp duty. If you are purchasing a property for £450,000 then you do not pay any stamp duty on the first £250,000 but the remaining £200,000 will be taxed at 5%.
There is a useful stamp duty calculator accessible via the government website but, at the time of writing, it has not yet been updated. However, further information can be found here https://www.gov.uk/stamp-duty-land-tax
Stamp Duty Changes – How We Can Help
Rest assured that our online quoting facility has been fully updated and our conveyancers are working hard to ensure any draft tax returns for ongoing matters are amended accordingly so that the correct amount of tax is paid.
If you have any questions or queries or would like a new quote for a potential property purchase, please feel free to contact either myself or the team on freephone 0800 011 6666.