First-time buyer? Stamp duty tax cuts revealed

In the government’s recent growth plan, announced by the former chancellor on Friday 23 September, it was revealed that first-time buyers will only pay stamp duty land tax on homes worth over £425k, instead of those worth over £300k. This first-time buyers’ relief applies to properties worth up to £625k, instead of £500k.

In a statement from the new chancellor today (17 October 2022), Jeremy Hunt has confirmed that these changes to stamp duty will remain.

Alongside this, the nil-rate band has been doubled from £125k to £250k for all buyers, meaning that 200,000 people will be able to buy a home without paying stamp duty tax. However, the 3% surcharge applicable to purchases of “additional property” continues to apply in all cases, including properties that fall within the nil-rate band. Higher rates also still apply in certain circumstances, such as for purchases by companies, trusts or non-UK residents.

The changes to stamp duty are intended to allow people to “keep more of the money they earn… boost household consumption, increase economic confidence and support jobs.”

If you’re a first-time buyer, or moving house, and need help from our team of residential property lawyers, please don’t hesitate to contact us. As always, we’d be delighted to assist.

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