STAMP DUTY CHANGES

Recent Stamp Duty Changes

Following the ‘Mini Budget’ in September 2022, cuts were made to Stamp Duty from 23rd September 2022, providing reliefs to property transactions in England and Wales, meaning that roughly 200,000 more people will avoid having to pay Stamp Duty altogether.

What is Stamp Duty Land Tax?

Stamp Duty is a tax payable when purchasing either a freehold or leasehold property. The amount of tax payable depends on the purchase price, whether you are buying a second home, buy – to – let or are a first-time buyer.

What changes have been made?

  • The Nil Rate Band for Stamp Duty has been increased from £125,000 to £250,000 for all property buyers purchasing a home to be their main residence.
  • For First Time Buyers, the level at which Stamp Duty is payable has increased from £300,000 to £425,000 and reliefs are available on properties costing up to £625,000 with a 5% Stamp Duty payable on properties between £425,000 – £625,000.

Current rates

For standard purchases where the property is your main residence:

Relevant Consideration Percentage
Up to £250,000 Nil
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

For additional purchases:

Relevant Consideration Percentage
Up to £250,000 3%
The next £675,000 (the portion from £250,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%

If you are looking to purchase a new property and want further information on what the new Stamp Duty rates mean for you, please contact our offices on 016973 42121 (Wigton)/ 01228 522215 (Carlisle).

 

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