Stamp Duty Land Tax Changes

Posted on: 27/09/2022

Category: For you

The Chancellor’s mini budget of 23 September has made a number of changes to the Stamp Duty Land Tax rules with effect from 23 September 2022.

The biggest is that the threshold for payment of SDLT on residential property has been increased from £125,000 to £250,000.

The nil rate threshold for First Time Buyers’ Relief is increased from £300,000 to £425,000 and the maximum amount that an individual can pay for a property whilst still being eligible for First Time Buyers’ Relief increases to £625,000.

From a purchase price of £250,001 to £925,000 SDLT is charged at 5%; from £925,001 to £1,500,000 SDLT is at 10% and for properties costing more than £1,500,000 it is at 12%.

There are no changes in relation to purchases of non-residential property.

Interest rates are of course increasing but in relative terms mortgages are still quite cheap compared with rates before the Global Financial Crisis of 2008 so the prudent purchaser can still get into the market.