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Stamp Duty cuts

Stamp duty

The Chancellor (Friday 23rd September) unveiled his Growth Plan to release the huge potential in the British economy by tackling high energy costs and inflation. One of the major findings were the cuts to Stamp Duty.

  • Stamp Duty cuts will help people on all levels of the property market and lift 200,000 homebuyers every year out of paying the tax altogether.

Cuts to stamp duty will hurt first-time buyers and stoke an inflationary bubble in the property market as house prices rise at the fastest rate for almost 20 years, according to the Guardian.

Under the new plans, no stamp duty will be paid on the first £250,000 of a property – up from the previous £125,000 threshold. First-time buyers will not have to pay any stamp duty on property up to £425,000, up from £300,000.

The new stamp duty rates are as follows:

£0 – £250,000 = 0 per cent

£250,001 – £925,000 = 5 per cent

£925,000 – £1,500,000 = 10 per cent

£1,500,000 and over = 12 per cent

Here are the rates for first-time buyers:

£0 – £425,000 = 0 per cent

£425,001 – £625,000 = 5 per cent

£625,001 – £925,000 = 5 per cent

£925,001 – £1,500,000 = 10 per cent

£1,500,000 and over = 12 per cent

First-time buyers in London may save up to £11,250 under the new regulations. According to official estimates, non-first-time buyers purchasing a house for £312,000 — the average price of a home in England according to the Land Registry  would save roughly £2,500. However, these savings might be overshadowed by increased borrowing costs if the Bank of England raises interest rates to offset the rise of inflation.

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