September 2022 Budget: Stamp Duty Land Tax Changes

On Friday 23^rd September 2022, Chancellor Kwasi Kwarteng announced his first budget, with changes to stamp duty land tax (SDLT) leaving many current homebuyers rejoicing.

The changes, which are effective immediately, sees the threshold of the price of a house at which stamp duty becomes payable, rise from £125k to £250k, meaning stamp duty is not payable on the first £250k of a house purchase. In the case of first time buyers, this threshold is even greater, with the first £425k of any house purchase being free from stamp duty tax.

How much stamp duty land tax will I pay?

The new thresholds are:

• 0%: £0 - £250,000 (or £0 - £425,000 for first time buyers*)
• 5%: £250,001 - £925,000
• 10%: £925,001 - £1,500,000
• 12%: £1,500,001 and over

At this time, the changes are permanent with no indication that this is a temporary change. Therefore, any future reductions in thresholds are likely to be given with some warning, meaning homebuyers would have at least some warning of any impending changes.

*the first time buyer discount is only applicable on properties with a value of £625,000 which has been increased from £500,000.

Local conveyancing solicitors

If you are planning to take advantage of these changes, Holmes & Hills property solicitors can offer a conveyancing quote for your conveyancing needs, and are proud that on average, we have a 20% higher completion rate than the industry standard. This means that more of the property transactions we deal with go through to a successful completion.

What is a conveyancing quote and what should I look out for?