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Stamp Duty Cut September 2022
The government has announced a cut to stamp duty, the tax paid when people buy a property in England and Northern Ireland.
The threshold at which the tax falls due has been raised to £250,000 from its current £125,000 level.
Meanwhile the threshold for first-time buyers has been increased from £300,000 to £425,000.
The changes should remove 200,000 people from having to pay stamp duty, Chancellor Kwasi Kwarteng said.
The chancellor also increased the value of the property on which first-time buyers can claim stamp duty relief from £500,000 to £625,000.
A buyer splashing out £500,000 on a home will now be charged £12,500 rather than the previous £15,000.
What are the new stamp duty rates?
The amount of stamp duty you pay depends on the cost of the property.
Chancellor Kwasi Kwarteng announced the permanent changes as part of the government's mini-budget. They come into effect straight away.
The price at which stamp duty is paid was doubled from £125,000 to £250,000.
The 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+
The chancellor added that discounted stamp duty for first-time buyers will now apply to properties costing up to £625,000 - up from £500,000.
Information supplied by BBC NEWS
