New Permanent Cut in Stamp Duty Tax

A permanent cut in stamp duty was announced on Friday 23rd September in the new Chancellor’s ‘mini’ budget which will save homebuyers thousands of pounds.

The latest government reform from Kwasi Kwarteng has doubled the threshold at which all buyers start paying stamp duty tax, from £125,000 to £250,000

The Government has also expressed a commitment to helping first-time buyers step onto the property ladder. Firstly, by increasing the level that first-time buyers start paying stamp duty from £300,000 to £425,000.

Secondly, the Government has confirmed that it’s giving first-time buyers access to the relief when buying a property that costs less than £625,000 rather than the current level of £500,000.

The introduction of these new measures will see stamp duty bills reduced across the board for all movers by up to £2,500 and for first-time buyers the ability to access up to £11,250 in stamp duty tax relief.

The current rates are now:-

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+

It has been projected that by doubling the nil-rate band, this will enable up to an additional 29,000 people to move home each year. This will help stimulate the housing market and the multitude of industries and thousands of businesses that rely on the buying and selling of property. This includes estate agents, builders, solicitors, surveyors, cleaners, contractors, removal companies, electricians, carpenters, plumbers, decorators etc.

According to Rightmove, two thirds of homes on the market are now exempt from stamp duty for first-time buyers in England. Traffic to the property portal jumped by 10% following the announcement by the Chancellor on Friday.

If you are thinking of buying or selling your property, please call our Sales Team today on 020-7619-3750 (Archway), 020-7354-9111 (Highbury) or 020-7281-2000 (Stroud Green), or email info@davidandrew.co.uk