The government is reducing stamp duty land tax for home purchases completed on or after today (Friday 23 September). The new tax rates apply till further notice: they are not temporary in the way that the Covid stamp duty reductions were.
- Less tax on everyone’s purchases
In most cases there was no stamp duty to pay on a purchase at £125,000 or less. From today that tax-free figure is doubled to £250,000. The higher tax rates are unchanged, but everyone who would have paid any stamp duty before will now pay less.
- Extra good news for first-time buyers
For first-time buyers, the first £425,000 of the price will be tax-free. Special tax rates for first time buyers will now apply if the price of your home is up to £625,000, instead of £500,000.
These reductions are not yet reflected in our conveyancing quotations or any completion statements we have already sent you. So if your purchase is completed today or in the near future we may be sending you a refund.
Sadly, the changes are not retrospective. If you completed your purchase before 23 September tax must still be paid at the old rates.
Want to know more?
Your lawyer will be happy to advise if you have any queries about SDLT or these changes. You can also use the government’s Stamp Duty Land Tax (SDLT) calculator to work out the SDLT on your purchase.