As had been rumoured in the press this week, the Chancellor has now made the formal announcement of a cut to Stamp Duty Land Tax during the ‘mini budget’ this morning, with the new rates applicable to transactions from today.
The current threshold of zero SDLT is to be raised to £250,000, meaning that a property under that value does not attract any SDLT at all, and the rates for all property values have adjusted accordingly. This means a saving at all property values, which will no doubt be welcome to our purchasing clients!
First Time Buyers also benefit, with the zero rate SDLT increasing to a house purchase up to £425,000. First Time Buyer relief (a saving on the usual rates of SDLT) will be available on properties up to £625,000.
These measures are part of the Government’s wider package intended to help stimulate the economy, although there are many in the Property field with concerns about further stimulating demand while supply of properties on the market is still low. The Government’s temporary SDLT cuts during the Covid-19 pandemic caused quite a frenzy of house buying.
It is also notable that the Government appears not to have chosen to address changes to the higher rate SDLT for second home owners and investment purchasers – although these buyers will benefit also from the general reduction, the additional 3% uplift is still applicable to those qualifying property purchases.
It is expected that today’s announcement will bring about another period of increased activity in the property markets – and for our current clients a very welcome and surprise bonus!
Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And were accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.