STAMP DUTY CUT

NEW STAMP DUTY CUT... EXPLAINED!

The chancellor, Kwasi Kwarteng, has confirmed a permanent stamp duty cut, with no tax to be paid on properties up to the value of £250,000.

Kwarteng announced the policy in a mini-budget on Friday, almost a year after the last stamp duty holiday ended. He also increased the threshold for first-time buyers to £425,000. Here we explain the changes in full. 

Under the new system, the first £250,000 of a property’s value will be exempt, and buyers will pay 5% of the value of the home from £250,001. The portion between £925,001 and £1.5m will continue to be taxed at 10%, and any property worth more than that will be subject to stamp duty rates of 12%.

The level at which first-time buyers have to pay stamp duty will rise from £300,000 to £425,000 in a move to increase home ownership. Under the plans, the first-time buyer relief will be applicable to properties worth up to £625,000, compared with the current £500,000.