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Stamp Duty Threshold changes 2022

The UK government announced a reduction in the stamp duty threshold as part of its mini-budget in late September 2022.

What is the stamp duty threshold?

Stamp Duty Land Tax (SDLT) is paid when you buy residential property and applies to properties above a certain value. The stamp duty threshold has been increased across the board for property purchases in England and Northern Ireland and applies from 23 September 2022. Please note that these changes only apply in England and Northern Ireland, as Wales and Scotland operate slightly different land tax schemes.

How does the increase affect my property purchase?

SDLT is paid on increasing portions of the overall purchase price. If you’re wondering what the main changes are, we’ve outlined them below to make it easier to understand how the increase in the threshold will impact you.

From 23 September 2022 onwards, savings of up to £2,500 can be made by all residential purchasers, compared to what they would have paid before the announcement in the mini-budget.

1. Everyone buying a property will benefit from a 0% stamp duty rate for purchases up to a value of £250,000.

What this means in practice

Someone buying a house for £295,000 will pay 0% SDLT on the first £250,000 and 5% on the last £45,000, meaning they will pay a total SDLT of £2,250.

2. First-time buyers will benefit from additional SDLT relief. This means you won’t pay stamp duty for properties with a purchase price up to £425,000, and you can claim additional SDLT relief on properties bought for up to £625,000.

What this means in practice

A first-time buyer purchasing a house for £500,000 will pay 0% stamp duty on the first £425,000 and 5% on the final £75,000. The total stamp duty payable would be £3,750. (Source: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)

For example, a first-time buyer purchasing property in London for £543,500 will now pay £5,925 instead of the £17,175 they would have paid under the old system. (Source: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)

For more information on the stamp duty threshold increase, please refer to the UK government’s Factsheet.

You can learn more about Stamp Duty Land Tax on the government website.