Published: 23/09/2022 By Rachel SyderStamp Duty update
Has stamp duty been affected in the Autumn Statement?
In the latest statement, Jeremy Hunt has confirmed stamp duty will remain at the current rates and will be unaffected. Mr Hunt has promised the freeze until the end of March 2025, where the tax will likely rise again. “This will create incentives to support the housing market by boosting transactions” he said.
The Chancellor further advised he would then “sunset” the cuts so that they are abolished but will be kept under review. The recent changes to stamp duty rates were changed in the infamous ‘mini budget’ announced by his predecessor Kwasi Kwarteng, being nothing paid for the first £250,000 of a property’s value (an increase from the previous threshold of £125,000). For first time buyers the new tax free amount is £425,000 (increased from £300,000).
Stamp duty is a tax payable to the government when you buy a home, or land, priced above a certain threshold in England or Northern Ireland.
Previously, you would pay stamp duty tax on a home, or the portion of a home, priced between £125,001 and £250,000. Currently no stamp duty is payable below the price threshold of £250,000.
This means a third of all homes currently for sale (33%) are now completely exempt from stamp duty in England, compared to 7% when the threshold was £125,000.
Previously, first-time buyers paid no stamp duty on the first £300,000 of a home purchase. This has now been raised to £425,000. And if the home you’re buying is priced below £625,000, you’ll still pay no stamp duty on the portion of the property priced below £425,000, and 5% on the portion priced above this. This is an increase of £125,000 on the previous price cap of £500,000.
These changes will reduce stamp duty bills across the board for all home-movers by up to £2,500, with first-time buyers able to save up to £11,250.
The cuts also mean that two thirds of homes (66%) are now exempt from stamp duty for first-time buyers in England.