Stamp Duty reduction
On the 23rd September 2022, Kwasi Kwarteng, the Chancellor of the Exchequer, announced a ‘mini-budget' with multiple tax cuts.
Stamp Duty has been cut for thousands of home buyers in England and Northern Ireland as the minimum thresholds for when the tax is paid have been increased. Stamp Duty is the tax that becomes payable once the purchase of a property has been completed and you become the legal owner of that property.
Stamp Duty will no longer be charged on the first £250,000 of a property's value. This is double that of the previous threshold, where no Stamp Duty was charged on the first £125,000.
The additional Stamp Duty relief for first-time buyers has also been increased. This means that first-time buyers won't pay stamp duty for properties worth up to £425,000, provided that the property costs less than £625,000. This has been increased from the previous threshold of £300,000, where the property costs less than £500,000.
What this means for you
If you’re buying a property in England or Northern Ireland and you are not a first-time buyer you might save on average £2,500 in Stamp Duty:
| Property value | Stamp Duty Paid (before) | Stamp Duty Paid (now) | Amount saved |
|---|---|---|---|
| £0 - £125,000 | £0 | £0 | - |
| £200,000 | £1,500 | £0 | £1,500 |
| £250,000 | £2,500 | £0 | £2,500 |
| £300,000 | £5,000 | £2,500 | £2,500 |
| £400,000 | £10,000 | £7,500 | £2,500 |
| £500,000 | £15,000 | £12,500 | £2,500 |
| £600,000 | £20,000 | £17,500 | £2,500 |
| £750,000 | £27,500 | £25,000 | £2,500 |
| £1,000,000 | £43,750 | £41,250 | £2,500 |
If you’re buying a property in England or Northern Ireland and you are a first-time buyer, you could save up to £11,250 in Stamp Duty:
| Property value | Stamp Duty Paid (before) | Stamp Duty Paid (now) | Amount saved |
|---|---|---|---|
| £0 - £300,000 | £0 | £0 | - |
| £425,000 | £6,250 | £0 | £6,250 |
| £525,000 | £16,250 | £5,000 | £11,250 |
| £625,000 | £21,250 | £10,000 | £11,250 |
| £750,000 | £27,500 | £25,000 | £2,500 |
| £1,000,000 | £43,750 | £41,250 | £2,500 |
Find out more
Use our Stamp Duty Calculator to find out how much Stamp Duty you will pay on your next property purchase.
To learn more about the mini-budget changes, we recommend reading the Governments press release.