What does the new stamp duty cut mean for home buyers?

Oliver Meddick By Oliver Meddick

Published 30th September 2022

What does the new stamp duty cut mean for home buyers?

With the arrival of the new stamp duty rules as announced in the recent mini budget on Friday 23rd September, we provide a quick glance summary of the changes and what the stamp duty rules could mean for you. 

What is stamp duty?

Stamp duty is a tax payable on all property purchases. Different rates apply dependant on the price of the property and your situation e.g.  if you are a first time buyer or if you own more than one property.  

When do you pay stamp duty?

Stamp duty is calculated and paid on your behalf by your conveyancer. It is done as part of the conveyancing process. It must be paid within 14 days after completion.  

What are the new stamp duty rules?

The new stamp duty boundaries are as follows:

Purchase Price BandsPercentage Rate
Up to £250.0000%
£250,000 to £925,0005%
£925,000 to £1.5 million10%
Above £1.5 million12%

 

For first time buyers the threshold at which stamp duty will be paid has risen from £300,000 to £425,000
 

What were the previous stamp duty rules?

Purchase Price BandsPercentage Rate
Up to £125,0000%
£125,000 to £250,0002%
£250,000 to £925,0005%
£925,000 to £1.5 million10%
Above £1.5 million12%

 

I’m in the process of buying a property. What does the stamp duty cut mean for me?

The stamp duty changes came into effect on Friday 23rd September and so those in the process of buying a property will benefit from the tax break as of this date. We advise you to speak to your conveyancer to clarify if there is a change to the amount of stamp duty payable.

Stamp duty calculator

Use the Home Legal Direct  stamp duty land tax calculator to see how much stamp duty you will pay under the new stamp duty boundaries.

More information?

Click here to read more about the mini budget.
 

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