top of page
  • emily5888

Stamp Duty savings for homebuyers

In September, the government announced a permanent Stamp Duty cut in England and Northern Ireland, which means no tax will be paid on the purchase of properties up to £250,000. Although most of the policies from the ‘mini-budget’ have since been scrapped, this one has stayed in place.

Back to the pandemic

During the summer of 2021, a government scheme to cut Stamp Duty helped fuel frenzied demand and record-breaking sales. The new measure was announced by then-Chancellor Kwasi Kwarteng almost a year after the pandemic-era Stamp Duty holiday ended and took effect immediately.

Higher base

The first £250,000 of a property’s value is now exempt from Stamp Duty, up from £125,000 previously. As a result, 200,000 more people will be taken out of paying the tax altogether, the government claims

Beyond that, buyers will pay 5% of the value of the home from £250,001 to £925,000 and 10% on the portion between £925,001 and £1.5m anything above £1.5 million is charged at 12%.

First-Time Buyers

The threshold for first-time buyers having to pay Stamp duty has also risen with the maximum property value to claim relief rising from £500,000 to £625,00 and the 0% band has been increased from £300,000 to £425,000 with 5% being charged on the purchase price between £425,000 and £625,000.

As an example a first-time buyer now purchasing a property for £500,000 will pay £3,750 in stamp duty.

Your home may be repossessed if you do not keep up with repayments on your mortgage.

33 views0 comments

Recent Posts

See All

Housing and mortgage update

The Bank of England (BoE) kept Bank Rate at 5.25% following the latest meeting of the Monetary Policy Committee (MPC) in February. Bank Rate unchanged Having risen to 5.25% in August 2023, the MPC vot


bottom of page