Firstly, what is stamp duty tax?
Stamp duty tax is a tax you pay when you buy a property over a certain price. How much you pay depends on the value of the property you’re buying. It also depends on whether you’re buying your first home or your next home (more on that below).
This morning, it was announced that stamp duty tax has been cut and is taking effect from 23rd September 2022.
First-time buyer
For first-time buyers, the threshold before stamp duty is paid has been raised from £300,000 to £425,000. This means that those looking to purchase their first home won’t need to pay any stamp duty on homes that cost £425,000 or less.
| Property price | Old rates (before 23rd September 2022) | New rates (23rd September 2022 onwards) |
| £100,000 | £0 | £0 |
| £200,000 | £0 | £0 |
| £300,000 | £0 | £0 |
| £400,000 | £5,000 | £0 |
| £500,000 | £10,000 | £3,750 |
| £600,000 | £20,000 | £8,750 |
| £700,000 | £25,000 | £22,500 |
| £800,000 | £30,000 | £27,500 |
Next-home buyer
For those buying their next home, the threshold before stamp duty is paid has been raised from £125,000 to £250,000. This means that those looking to purchase their next home won’t need to pay any stamp duty on homes that cost £250,000 or less.
| Property price | Old rates (before 23rd September 2022) | New rates (23rd September 2022 onwards) |
| £100,000 | £0 | £0 |
| £200,000 | £1,500 | £0 |
| £300,000 | £5,000 | £2,500 |
| £400,000 | £10,000 | £7,500 |
| £500,000 | £15,000 | £12,500 |
| £600,000 | £20,000 | £17,500 |
| £700,000 | £25,000 | £22,500 |
| £800,000 | £30,000 | £27,500 |
Is the stamp duty cut a good thing?
In short: yes.
During the pandemic in 2020 and 2021, we saw the positive impacts of a stamp duty cut. It gave a boost to the UK economy by creating more activity in the housing market. This is the aim again, which could be great news for those wanting to buy a property.
The cut quite literally means a tax cut. So, it means you pay less tax when buying a house. Less money on tax means more money on your home (and all the extras!).
Which homes can first-time buyers purchase with no stamp duty?
1. The Becket at Meon Vale, Stratford-upon-Avon
The 4-bed Becket home at Meon Vale is priced at £369,995. This means that if you’re a first-time buyer you won’t need to pay any stamp duty, allowing you to save £3,499!
