Stamp Duty cut offers instant saving

Stamp Duty cut offers instant saving

A quick refresher on the Stamp Duty changes announced recently

  • Stamp Duty has been abolished on the first £250,000 of any property purchase, (up from £125,000), making an immediate saving of up to £2,500 for home buyers. Close to half (47%) of all sales in England over the past year were under £250,000.
  • First-time buyers could save up to £6,250, because they will now be exempt from stamp duty on the first £425,000. The purchase price at which they can take advantage of this relief has been raised too, from £500,000 to £625,000.
  • Second home owners and overseas purchasers will still be required to pay the 3% Higher Rate Additional Dwelling Tax and 2% non-resident surcharge respectively.
  • The Chancellor's announcement only applies to England. In Wales, from October 10th no Land Transaction Tax will be payable on homes priced up to £225,000 (current threshold £180,000), a saving of £1,575 on a property priced £225,000. Those paying over £345,000 are set to pay more.
  • For now rates in Scotland remain unchanged, the threshold in Scotland is £145,000.
  • Source: Dataloft, HMRC, Land Registry, Welsh Revenue Authority, Revenue Scotland


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