The Government has today permanently cut Stamp Duty which is the tax paid when people buy a property in England and Northern Ireland.
The threshold at which the tax falls due has been raised to a more realistic £250,000 from its current low level of £125,000.
Meanwhile the threshold for first-time buyers has been increased from £300,000 to £425,000.
The chancellor also increased the value of the property on which first-time buyers can claim stamp duty relief from £500,000 to £625,000.
The changes should remove arond 200,000 people from having to pay stamp duty the Chancellor Kwasi Kwarteng has predicted.
A buyer splashing out £500,000 on a home will now be charged £12,500 rather than the previous £15,000 which is a good saving.
Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society," Mr Kwarteng told the Commons as he presented his mini-budget.
Different rates apply in Scotland under the Land and Buildings Transaction Tax, and in Wales with the Land Transaction Tax.
Under the changes announced by the chancellor, anyone spending £250,000 on a property in England or Northern Ireland will avoid £2,500 in stamp duty charges as it was previously charged at 2% between £125,000 and £250,000.
Anyone other than first-time buyers spending £300,000 will now be charged £2,500, rather than the previous £5,000.
Lets hope this gets the Market moving along nicely again after the Summer Holiday lull. If you would like to know more do give us a call on 01202 582222
