The UK’s newly appointed Chancellor of the Exchequer Kwasi Kwarteng MP has presented The Growth Plan 2022 to the House of Commons. The plan reveals changes in the tax legislation, including Stamp Duty Land Tax cuts. The previous rates for SDLT were nil for residential properties priced at £125k and less. Properties priced above £125k were subjected to rates between 2% and 12%.
The Exchequer has abolished SDLT to residential properties worth £250.000 and under. This is great news for any buyers of properties within the £250k threshold. Unfortunately, no further changes have been announced by the Exchequer. This means that buyers or investors of properties worth £250,0001 and above will not benefit from the new legislation. As a consequence, properties worth between £250,001 and £925,000 will be subjected to the 5% stamp duty land tax rate. Whilst properties worth between £925,001 and £1.5 M are subjected to the old 10% SDLT rate. Added to this, any properties worth £1.5 M and above are subjected to the previous 12% SDLT rate.
First time buyers will be pleased to know that they’re exempt from SDLT for properties priced at £425,000 and under. Furthermore, there’s relief available for residential property transactions valued at £625,000 and below this threshold. This will certainly help boost the UK’s property market and encourage first time buyers, with these new exemptions.
If you’re a first time buyer or property investor, please get in touch with one of our property lawyers. We’ll help you with the legal side of buying a property. The legal process of buying property can be confusing, particularly when there are changes in legislation. At DG Law we take pride in our personable service, as such we’ll guide you every step of the way. SG
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