The Government has used the latest budget to announce a number of changes to the stamp duty rules, with several permanent new thresholds introduced and the scrapping of it for residential or commercial land purchases.
These changes to the rules around stamp duty were among many tax cuts that Kwasi Kwarteng, the Chancellor of the Exchequer, announced in the mini-budget. The purpose behind them is to try to stimulate growth and bring the UK economy out of its post-COVID-19 recession.
According to Mortgage Strategy, Kwarteng stated that there was also a desire to make it easier for people to get onto the housing ladder for the first time, as this would make them feel more invested in the country and the economy.
The previous threshold below which stamp duty did not apply when buying a property was £125,000. Kwarteng went on to say that:
“We are doubling that to £250,000. For first-time buyers (FTBs), who currently pay no stamp duty on the first 300,000 pounds, we’re increasing that threshold to £425,000.”
Kwarteng concluded by saying that FTBs would also now be able to get relief on stamp duty for properties valued at up to £625,000 rather than £500,000 and that these measures would ensure that up to 200,000 people in the UK would no longer have to pay stamp duty at all, starting immediately.
This should help advisors with CeMAP training to find suitable loans for first-time buyers, but there remains an issue with the supply shortage of available houses for people to buy.