The Government in the mini-Budget announced Stamp Duty Land Tax (“SDLT”) cuts to help first-time buyers and next-move homeowners purchase properties more affordably. These changes were effective from 23 September 2022.
Unlike many of the other proposed tax changes, these cuts weren’t reversed by the new Chancellor in the Autumn Statement, although it was announced that they are now only temporary until 1 April 2025.
What are the SDLT cuts?
Under the new rules, those that only own 1 property will pay no SDLT on the first £250,000 of the property purchase price. The previous threshold was £125,000 so it is a considerable increase that will allow more people to purchase homes without paying any SDLT.
Effectively the 2% rate which previously applied between £125,000 and £250,000 has been abolished. So for those buying a property for more than £250,000 they will save £2,500.
If you would like to calculate your potential SDLT liability please use this online calculator.
What about First-Time buyers?
For first-time buyers, there are even more SDLT relief measures. Purchasers eligible to claim first-time buyers’ relief have special rates. From 23 September 2023 until 1 April 2025, they pay zero SDLT on the first £425,000 (previously the threshold was £300,000) and 5% on the remainder, but for no more than a further £200,000.
Where the chargeable consideration exceeds £625,000, no first-time buyers’ relief is available and standard rates are payable instead.
So a first-time buyer can buy a property for up to £425,000 and pay no SDLT.
How can we help?
At Hawsons we have a dedicated team of property & construction accountants at our offices in Sheffield, Doncaster and Northampton.
Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.
Our in-house tax team has advised in many aspects of taxation specific to the property investor including in the areas of VAT, Capital Allowances, Income Tax, and Corporation Tax and Capital Taxes.
Free initial meeting
Stephen Charles
Tax Partner, Sheffield
David Cairns
Tax Partner, Northampton
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