Stamp duty: what is it and will it be reduced?

The new Chancellorspeaks in the lower house said this morning the changes would mean an additional 200,000 people would now avoid having to pay the tax.

Mr. Kwarteng said: Home ownership is the most common way for people to own an asset, thereby participating in the success of our economy and society.

“To support growth, boost confidence and help families who want to own their own home, I can announce that we are reducing stamp duty. Under the current system, no stamp duty is payable on the first £125,000 of the value of a property. We’re doubling that – to £250,000.”

Mr Kwarteng also said the stamp duty threshold for first-time buyers would be raised from £300,000 to £425,000.

The Argus: PAPA

He added: “We will increase the value of the property, for which first-time buyers can apply for relief, from £500,000 to £625,000.

“The steps we have taken today mean that a total of 200,000 more people will be exempted from paying stamp duty. This is a permanent stamp duty reduction effective today.”

What is stamp duty?

Stamp duty is a tax paid by anyone who buys a property.

How it works and how much you pay depends on the UK country where the property is being bought and the price of the property.

What are the rules in Scotland and Wales?

In Scotland buyers pay property and building transaction tax and the rates are:

  • £0 to £145,000 (£175,000 for first time buyers) – 0%
  • £145,001 – £250,000 – 2%
  • £250,001 – £325,000 – 5%
  • £325,001 – £750,000 – 10%
  • £750,001+ – 12%

In Wales buyers pay property transfer tax and the rates are:

  • £0 to £180,000 – 0%
  • £180,001 – £250,000 – 3.5%
  • £250,001 to £400,000 – 5%
  • £400,001 to £750,000 – 7.5%
  • £750,001 – £1.5m – 10%
  • £1.5m + – 12%

Landlords in Scotland and Wales pay 4% on top of standard rates.

https://www.theargus.co.uk/news/22568820.stamp-duty-cut/?ref=rss Stamp duty: what is it and will it be reduced?

Fry Electronics Team

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