Date Published 23 September 2022
The Chancellor has announced this morning a cut to the Stamp Duty tax in England and Northern Ireland.
Stamp Duty is paid by the buyer of any property and can cost thousands of pounds.
This is a permanent cut to the Stamp Duty threshold of how much a property has to cost before stamp duty is paid. Before the announcement, one had to pay Stamp Duty on any property above £125,000. That threshold has been increased to £250,000.
As stamp duty is paid on completion, anyone currently buying a property will benefit from this as it is applicable from today on any house purchase in England and Northern Ireland.
Anyone buying a second home will also save this money (although they will still have to pay the additional 3% levy for second homes)
Stamp Duty now starts at £250,001 at 5% for next £675,000 (the portion from £250,001 to £925,000).
You only pay 5% on the amount over £250,000 (ie If you buy a house for £325,000, you only pay 5% on the difference between £325,000 and £250,000 i.e. £75,000 - 5% of £75,000 is £3,750)
Liz Truss and the Chancellor Kwasi Kwarteng believe that cutting stamp duty will support economic growth by encouraging more people to move home or jump on the property ladder.
Stamp Duty also decreases labour market elasticity as it curtails people from selling up and buying elsewhere, where the jobs are.
This is great news for anyone looking to move home in the next few months as it will save them up to £2,500, money that could be used to make the house move easier.
