Following the Mini Budget in September, cuts were made to Stamp Duty.
From September 23, it means that roughly 200,000 more people will avoid having to pay Stamp Duty altogether.
What is Stamp Duty?
Stamp Duty is a tax payable when purchasing either a freehold or leasehold property. The amount of tax payable depends on the purchase price, whether you are buying a second home, buy – to – let or are a first-time buyer.
What changes have been made?
The Nil Rate Band for Stamp Duty has been increased from £125,000 to £250,000 for all property buyers purchasing a home to be their main residence.
For first time buyers, the level at which Stamp Duty is payable has increased from £300,000 to £425,000 and reliefs are available on properties costing up to £625,000 with a five per cent Stamp Duty payable on properties between £425,000 to £625,000.
Current rates
For standard purchases where the property is your main residence:
Relevant Consideration Percentage
- Up to £250,000 Nil
- The next £675,000 (the portion from £250,001 to £925,000) 5%
- The next £575,000 (the portion from £925,001 to £1.5 million) 10%
- The remaining amount (the portion above £1.5 million) 12%
For additional purchases:
Relevant Consideration Percentage
- Up to £250,000 3%
- The next £675,000 (the portion from £250,001 to £925,000) 8%
- The next £575,000 (the portion from £925,001 to £1.5 million) 13%
- The remaining amount (the portion above £1.5 million) 15%
If you are looking to purchase a new property and want further information on what the new Stamp Duty rates mean for you, please contact our offices on 016973 42121 (Wigton)/ 01228 522215 (Carlisle)
