Stamp Duty Land Tax Changes 2022

Stamp Duty Land Tax (SDLT) is the tax payable when you purchase a property. There are various factors impacting how much tax you pay such as 

• The purchase price 

• If this is your first home 

• If you own more than one home

• You are moving from one home to another

Recently,  the Chancellor announced a Stamp Duty Land Tax relief on 23 September 2022, a welcomed change in the midst of rising mortgage rates and tightening the cost of living. 

Some changes were made to the thresholds at which Stamp Duty Land Tax becomes payable. These changes affect all residential purchases completed on or after 23 September 2022.

Stamp Duty Land Tax rates in general

The first change is increasing the price from which Stamp Duty Land Tax becomes payable, from £125,000 to £250,000, typically this means there will be no Stamp Duty Land Tax to pay on the first £250,000 of your purchase price

The new Stamp Duty Land Tax rates are:

·       0%: £0 - £250,000 (£425,000 for first-time buyers, previously £300,000)

·       5%: £250,000 - £925,000

·       10%: £925,000 - £1,500,000

·       12%: £1,500,000+

First-time buyers can also now claim First Time Buyer Relief on all purchases of the main residence up to a maximum purchase price of £625,000 (up from £500,000).

For individuals buying a second home or buy-to-let property, the new rates are:

·       3%: £0 – £250,000     

·       8%: £250,001 – £925,000       

·       13%: £925,001 – £1.5m

·       15%: over £1.5m        

At this time, the changes are permanent with no indication that this is a “Stamp Duty Land Tax holiday”. Hopefully, any future changes to thresholds should attract some warning of any impending changes so buyers can plan ahead.

If you would like to discuss Stamp Duty Land Tax rates in general, then please make an enquiry to see how we can help. You can contact me directly on 01206 217328 or email me at sarah.murphy@birkettlong.co.uk