New stamp duty rates!

In the recent mini-budget, Chancellor Kwasi Kwarteng has released the new stamp duty rates. The new rates for England and Northern Ireland are:

• “0%: £0 - £250,000 (£425,000 for first time buyers)
• 5%: £250,000 - £925,000
• 10%: £925,000 - £1,500,000
• 12%: £1,500,000+

The chancellor added that discounted stamp duty for first-time buyers will now apply to properties costing up to £625,000 - up from £500,000.” (BBC.co.uk, September 2022).

The current rates for Scotland are:

• “£0-£145,000 (£175,000 for first-time buyers) = 0%
• £145,001-£250,000 = 2%
• £250,001-£325,000 = 5%
• £325,001-£750,000 = 10%
• £750,001+ = 12%

Scottish landlords pay an extra 4% Land and Buildings Transaction Tax on top of standard rates.

For example, a second-time buyer purchasing a home worth £425,000 in Scotland would pay £15,850.” (BBC.co.uk, September 2022).

The current rates for Wales are:

• “£0-£180,000 = 0%
• £180,001-£250,000 = 3.5%
• £250,001-£400,000 = 5%
• £400,001-£750,000 = 7.5%
• £750,001-£1.5m = 10%
• £1.5m + = 12%

Welsh landlords pay an extra 4% Land Transaction Tax on top of standard rates.” (BBC.co.uk, September 2022).

Usually, you will pay the tax through your solicitors however you can also pay it via cash or cheque through some banks or alternatively directly online. Some mortgage lenders will allow you to add this to your loan but be aware with interest rates on top of this, you will end up paying a significant amount more. In England and Northern Ireland, from the day of completion you will have 14 days. However, in Scotland and Wales, you will have 30 days from purchase. When we had the stamp duty holiday last year, we saw property prices increase significantly, which will be more of an incentive for buyers come to the market. This will help those looking to move after another interest rate increase.

Read More: https://www.bbc.co.uk/news/business-53319433