Stamp Duty Land Tax Announcement – September 2022
Stamp Duty Land Tax (SDLT) is a tax payable when you buy a property or land over a certain price in England and Northern Ireland.
Chancellor Kwasi Kwarteng has today announced that SDLT will be cut as part of his mini-budget 2022.
What changes have been made to Stamp Duty Land Tax?
The SDLT-free threshold for residential properties has risen from £125,000 to £250,000 for buyers.
For first-time buyers the threshold has risen from £300,000 to £425,000. Relief is available if the purchase price is £625,000 or less.
The threshold for non-residential land and properties is £150,000.
Higher rates for additional properties will remain in place with 3% on top of SDLT rates if buying a new residential property means you’ll own more than one property. If you are replacing your main residence the 3% will not apply.
For more information, please see the Government website.
When do these changes start?
The changes will take immediate effect from 23 September 2022.
When do these changes revert?
This is a permanent measure in place in England and Northern Ireland.
How will these changes affect people who have already exchanged?
If you have recently exchanged but not yet completed, we will re-calculate the amount of SDLT which is payable and apply the new amount. To that end, we will contact you to inform you of any changes to your SDLT amount.
How will these changes affect people with a transaction in progress?
Any transactions in progress will be subject to the new threshold for SDLT. Of course, we will automictically apply the new figures.
How will these changes affect people who are planning to buy a property?
A key aim of the Government’s growth plan is to support families who wish to own their own home. The changes to SDLT, in particular, the relief for first-time buyers will hopefully provide reassurance to those concerned with the expense which comes with buying a new home.
Your local conveyancing solicitors
If you are planning on purchasing a property and wish to discuss your transaction with one of our experienced members of staff, please contact us.