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Stamp duty cut provides help to both first-time buyers and existing homeowners

Despite the recent reversal of many of the Government’s “mini budget” proposals, the announcement of the cut in stamp duty will be welcomed by those planning to buy a property.

Stamp Duty Land Tax (SDLT) thresholds have been raised, taking 200,000 more people out of paying stamp duty.

The threshold at which existing home owners begin to pay tax has been raised from £125,000 to £250,000.

For first-time buyers, there is even better news as there will be zero tax applicable to a property which costs less than £425,000.

For more expensive properties, the Government is allowing first-time buyers to access the relief when they buy a property costing less than £625,000 rather than the current £500,000.

The Government has stated that the measures will reduce stamp duty bills across the board for all movers by up to £2,500, with first-time buyers able to access up to £8,750 in relief.

How much stamp duty land tax will I pay?

The new thresholds are:

0%: £0 – £250,000 (or £0 – £425,000 for first time buyers)
5%: £250,001 – £925,000
10%: £925,001 – £1,500,000
12%: £1,500,001 and over

The changes apply only in England and Northern Ireland, with separate rules applying to Scotland and Wales.

Elizabeth Jennings, a Director with Mander Hadley, who specialises in property transactions, said: “The higher threshold for Stamp Duty will help many homeowners, potentially saving them thousands of pounds in tax.”

Mander Hadley has a highly experienced Residential Conveyancing department, whose solicitors and conveyancers understand the importance of providing a speedy, efficient and no-nonsense service, regardless of whether you are buying, selling or re-mortgaging.

To make obtaining a quotation quicker and easier, we now offer buyers and sellers an online 24/7 Conveyancing Portal.

The portal includes a price calculator which provides an instant estimate of our conveyancing fees and the charges payable to third parties.

Clients can instruct us online at the click of a button at any time of the day or night. As always, our dedicated conveyancing team will be available to assist throughout your transaction.

You can check out the Conveyancing Portal here or for help and advice please contact us and we will arrange for a member of the team to get in touch.