The current financial situation has dominated the headlines this week, with stamp duty cuts at the centre of the discussion.
This measure was announced by the Chancellor on 23 September 2022 and will apply to transactions with effective dates on and after 23 September 2022.
These stamp duty cuts do not apply to Scotland or Wales who operate their own land transactions taxes.
The Chancellor's announcement increases the amount that a purchaser can pay for residential property before they become liable to Stamp Duty Land Tax (SDLT), while maintaining the higher rate of 3% on additional dwellings.
The residential nil-rate tax threshold has increased from £125,000 to £250,000. However, if you are a First Time Buyer, the nil-rate threshold has increased from £300,000 to £425,000 and the maximum amount that an individual can pay while remaining eligible for First Time Buyers’ Relief is increased to £625,000.
This means that all individuals purchasing residential property on or after 23 September 2022 will pay less or no SDLT.
Dr. John Boyle, Director of Research and Strategy at Rettie and Co. said:
“the lifestyle offered by the location is more likely to determine a residential buyer’s decision than tax cuts, while landlords looking to invest will be more concerned with capital growth over time.”