September 2022
The government has raised the Stamp Duty Land Tax threshold in England and Northern Ireland helping first time buyers to get on to the property ladder and enabling people to keep more of the money they earn.
Stamp Duty Land Tax (SDLT) is a tax you pay whenever you purchase a house in England or Northern Ireland. Different rates of SDLT are paid on properties depending on their price once they pass a threshold which from 23rd September 2022 will be £250,000.
The government has reduced SDLT for anyone purchasing a residential property by doubling the level at which people begin paying this from £125,000 to £250,000 with an aim to boost the property market, in turn helping businesses expand to help fuel the wider economy growth.
Extra support is in place to help first time buyers get on the property ladder in two ways. By increasing the level first time buyers start paying stamp duty from £300,000 to £425,000 and allowing first time buyers to access the relief when they buy a property less than £625,000 compared to £500,000 as it was previously.
These measures will reduce stamp duty bills for all movers by up to £2,500 with first time buyers able to access up to £8,750 in relief, enabling up to 29,000 more people to move home each year.
The tax cut will allow hardworking people to keep more of the money they earn, increasing household spending, retaining economic confidence, and supporting hundreds of thousands of jobs which rely on a resilient property market such as estate agents, cleaners, builders, contractors, removal companies, plumbers, decorators, and others.
This is a permanent measure and will only apply in England and Northern Ireland. The Scottish and Welsh governments set their own taxation rates separately. More.
