Stamp duty – what the new rates mean for you

What is stamp duty?

Stamp duty land tax is a tax you pay on land or property over a certain amount. This is for properties in England and Northern Ireland. Scotland and Wales have other variations of the tax.

For all buyers

From 23rd September 2022, the Chancellor has announced a new threshold for stamp duty. The threshold has increased from £125,000 to £250,000. This means thousands of homeowners will be paying no stamp duty on properties up to £250,000, creating mass savings.

Summary of the new rates for non-first-time buyers:

Property Price Percentage of stamp duty tax

£0 - £250,000 NIL

£250,001- £925,000 5%

£925,001 - £1.5 million 10%

£1.5 million and above 12%

For first-time buyers

There is also better news for first-time buyers regarding stamp duty. Previously, first-time buyer relief was £300,000 on properties up to £500,000. Now, the rates are no stamp duty on the first £425,000 on properties with a purchase price of up to £625,000.

This means the rate would be 0% up to £425,000 then 5% from the £425,000 up to £625,000. The stamp duty tax would be 5%. Anything over this, then you will pay the normal rates of stamp duty.

This is to encourage and support buyers. Although, the rising interest rates are appearing to override the novelty of the new stamp duty thresholds.

Click here to visit the Gov.uk site for further details

Alternatively, contact our team for more information:

Office: +44 (0) 203 005 5269

Email: info@mestatesltd.co.uk