Chancellor Kwasi Kwarteng today (23 September) revealed a package of major cuts to the Stamp Duty Land Tax (SDLT), with the changes expected to increase additional residential investment, boost spending on household goods and support the hundreds of thousands of jobs in the property industry.
The nil rate band will be doubled from £125,000 to £250,000, meaning that 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all.
The standard buyer in England will save £2,500, meaning a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax. This is approximately £4,200 in total.
In addition, the Government is going even further to support first time buyers, who will now pay no stamp duty up to £425,000, and increasing the value of the property on which first time buyers can claim relief, from £500,000 to £625,000.
This tax cut will take effect from midnight today (Friday 23 September 2022). The Chancellor also announced that he will further support homebuyers by increasing the disposal of surplus government land to build new homes, increasing supply.
Chancellor Kwasi Kwarteng said:
“Today’s statement is about growth. Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society. So to support growth, increase confidence, and help families aspiring to own their own home, I can announce that we are cutting stamp duty.
Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. The steps we’ve taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty, effective from today.”
Policy Paper: The Growth Plan 2022: Factsheet on Stamp Duty Land Tax