Stamp Duty Thresholds Increased

In the government’s September mini-budget, Kwasi Kwarteng, the recently appointed Chancellor of the Exchequer, announced changes which included a reform of the current stamp duty rates. This was done as part of a plan to boost growth and stimulate the UK’s economy. Stamp duty is a one-off property tax payable on at the point of completion. Before the Chancellors announcement, stamp duty was payable on all property priced above £125,000. This tax-free threshold has now doubled to £250,000

First-time home buyers will also receive additional benefits, with a rising threshold which was originally set at £300,000 which will now become £425,000. The government is also allowing first-time buyers to access this relief when buying a property costing less than £625,000, instead of the previous ceiling of £500,000.

These new tax cuts will help reduce stamp duty bills across the board and first-time buyers will be able to receive up to £11,250 in relief.

Some industry experts feel that this tax cut will prolong and intensify demand in the UK property market – just as there were some signs that the market was beginning to slow down. This could also encourage the construction of more new housing, which is much needed across the UK.