Stamp Duty Land Tax is the tax you pay if you buy a property or land over a certain price. This morning, during his ‘mini budget’, Chancellor Kwasi Kwarteng announced that the SDLT-free threshold would increase from £125,000 to £250,000.
Meanwhile, for first-time buyers, the threshold will increase from £300,000 to £425,000. The value of properties on which first-time buyers can claim relief will also increase from £500,000 to £625,000. It is estimated that the changes will save approximately 200,000 people from paying Stamp Duty Land Tax each year.
Kwarteng confirmed that these cuts are permanent as of today (23/09/2022).
What are the consequences?
The updates are likely to bring social and job mobility, something welcomed up and down the UK. However, there are concerns that the cuts will soon be outweighed by rising interest rates that are increasingly affecting mortgage rates, causing them to increase.
Amaka Jackson, Managing Partner at Jackson Longe Solicitors said:
“This is good news indeed! I feel that the new stamp duty cut will bring about similar hikes in activities in an already busy property market as we saw mid the COVID19 pandemic. I expect that these savings to help many get on the property market for the first time and encourage property investors to expand their portfolios. We at Jackson Longe Solicitors are well positioned to assist the public with any assistance they require in this regard.”
Top Rated Property Solicitors in Richmond
At Jackson Longe Solicitors, our team would be happy to carefully and compassionately guide you through the conveyancing process and advice on how the new SDLT rules affect you. Do not hesitate to contact our team today at 0208 332 2069 or fill in this contact form.