Stamp Duty Land Tax Reduction – What Does This Mean For UK Property Owners?
Please note: This measure does not apply to Scotland or Wales who operate their own land transactions taxes.
The UK Government has recently announced that they will be cutting Stamp Duty Land Tax as part of their September mini budget from the 23 September 2022. They have stated that they hope this will help them transform the economy to one that is based on “high growth and low tax” and will boost the housing market again. So, what does this really mean for UK property owners?
What is stamp duty?
The easiest way to explain stamp duty is the money that you pay to the taxman when you buy a property that is worth over a certain value.
What exactly has changed?
Before this was announced, residential property owners were obliged to pay stamp duty for any property that costs over £125,000. By implementing this cut, it means that you will now not have to pay stamp duty unless your property exceeds £250,000. This is great news for homeowners as many will now be saving thousands of pounds – something that we can all agree will be much appreciated during this current economical period.
Alongside this, they have also announced that any first time buyers will also benefit from this tax cut by only having to pay stamp duty if the property exceeds £625,000. By doing this, it should make it more achievable for anyone wanting to get on the property ladder for the first time.
How could this affect me?
We can expect to see this tax cut allowing people to keep more of the money they earn, boosting household consumption and overall increasing economic growth. However, stamp duty rates do vary depending on the area in which you are buying, whether you are a first time buyer and the overall value of the property.
For example, if your property is valued between £125,000-£250,000 you will no longer have to pay any stamp duty but if your property value stands within the £250,000-£925,000 bracket, you can expect to pay around 5% in stamp duty rates.
The government has a useful stamp duty calculator should you want to find out how much you may be expected to pay when purchasing a property.
Looking to purchase a property?
Get ahead of the game by organising your removal service. At Reads Removals, we have over 95 years’ experience in the industry, helping thousands of customers move properties across the nation with our Removals Newark service. Request your free quote today to get the ball rolling.