Stamp Duty: UK Chancellor Kwasi Kwarteng announces cuts on stamp duty. What is in it for you?

Property prices continue to rise in the UK, despite the declaration by the new Chancellor of the Exchequer, Kwasi Kwarteng.

But let’s spell out what this new tax is about and how much citizens need to pay. The details below are all you need to understand about cuts on stamp duty.

Every time you buy a new property, either land or a new home, you pay a one-time tax called stamp duty. This is for properties purchased in England and Northern Ireland.

The stamp duty is paid only if your property value crosses a particular point. Up to £250,000, the tax is exempt.

First-time buyers of homes will have to bear a stamp duty if their property costs more than £450,000.

Starting from September 23, a permanent change has been incorporated, as informed by the UK Chancellor. The earlier rule was for properties above £300,000 for first-time buyers, and for properties below £125,000, the tax or stamp duty was exempt.

During the pandemic, the cost of stamp duty was reduced for properties up to £500,000. Starting July 1, 2020, lasting until October 1, 2021, the stamp duty did not apply to homes that cost below £250,000.

Now with the new rules for stamp duty, the buyer has to shell out 3% to 15% depending on the selling price. Therefore, the stamp duty will be on the balance value after you cut off the threshold. The current exemption is from £250,000 and below, so you can deduct that from your total value.

HMRC has a stamp duty calculator, which you can refer to on their website, which asks you a few questions about the value of the property you intend to purchase and your home ownership status.

Questions include the nature of the property, how many homes you own, and the likely date of purchase.

FAQ

  1. The top three areas for property rates in the UK
    Virginia Water, Surrey, (2) Beaconsfield, Buckinghamshire, (3) Cobham, Surrey.

  1. The most expensive property in Great Britain is?
    £250 million, in Mayfair, London. Owned by John Caudwell, a businessman.

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