Since the Autumn Statement, we have received more inquiries from clients about stamp duty land tax.
If you are our loyal readers, we briefly mentioned the changes in SDLT in the previous article.
In this article, we will explain in detail what the temporary increase in the threshold of stamp duty land tax means to you?
Stamp Duty Land Tax Temporary Threshold
On September 23, 2022, the government announced a temporary increase in the rate of stamp duty land tax until March 31, 2025.
This will save even more taxes and fees for young and middle class families who are about to buy a home, or even pay SDLT.
This move can not only stimulate people’s demand for home buying, but also add hundreds of thousands of jobs to the real estate market.
For most people, the high taxes and fees that need to be considered when buying a home are no longer a headache.
Purchasers of residential property in England and Northern Ireland.
It does not apply to transactions in Scotland and Wales.
Stamp Duty Temporary Threshold Changes
Stamp duty land tax has always maintained a relatively high tax rate, and non-first-time home buyers need to pay a 3% tax.
Then, after a series of adjustments, the minimum stamp duty threshold was raised from £125,000 to £250,000.
The zero-rated threshold for first home buyers has been raised from £300,000 to £425,000.
First home buyers get an additional relief of up to £11,250 if the overall property price is less than £625,000.
Impact on Home Buyers
Generally speaking, the temporary increase in the threshold of stamp duty will help more families to purchase real estate more easily.
The government’s decision will encourage people to buy houses and stimulate real estate transactions and drive a series of industries.
This is certainly a positive sign for young homebuyers.
Professional accounting teams will be familiar with these changes and will not affect the process of filing taxes for home buyers.