Just one day after the new chancellor announced the mini-budget U-turn, we’ve had a lot of inquiries from clients about SDLT.
In fact, this “government’s U-turn” did not revise the previous SDLT decision again, but affected the housing market.
SDLT cuts are a positive sign for homebuyers, but you need to consider whether loan interest will be a stress for you in the future.
Stamp Duty Land Tax (SDLT)
If you plan to purchase a home, be sure to understand the SDLT and which circumstances are subject to tax.
If you buy property or land in England and Northern Ireland for more than a certain price, you must pay SDLT.
What circumstances need to pay SDLT:
- buy a freehold property
- buy a new or existing leasehold
- buy a property through a shared ownership scheme
- are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house
You will need to pay SDLT in most cases unless:
- You are purchasing a residential property with a value of less than £250.000
- £425,000 for first-time buyers buying a residential property worth £625,000 or less
- £150,000 for non-residential land and properties
- If you want to calculate SDLT, you can use the calculator provided by the government to quickly query.
SDLT changes after mini budget
Stamp duty, which we have mentioned many times before, has always been a topic of concern for home buyers, such a good news to all planning home buyers.
The Chancellor of the Exchequer announced a reduction in stamp duty in England and Northern Ireland with immediate effect.
The stamp duty threshold has been raised from £125,000 to £250,000. First-home buyers currently do not have to pay stamp duty on the first £300,000, which will be raised to £425,000.
What’s the interest rate?
Through the two fiscal plans, we can almost see the government’s attitude towards the real estate market.
We can’t predict the future direction of lending rates for you, despite the current positive signs in the homebuying market.
In addition to this, our accounting team expects you to evaluate your own financial position before making a decision.
For now, the Bank of England is still assessing the future. It may take a miracle if you want to see loan rates plummeting.
You may also be interested in inflation and how to prepare proof of funds, follow our social media accounts to learn more.