Following the Mini Budget delivered on 23 September 2022, residential Stamp Duty Land Tax rates have changed (again). Unlike Sunak's "SDLT holiday of 2020-2021", Kwarteng has confirmed that these cuts are permanent – a relief for the real estate sector at the prospect of no looming SDLT deadlines.
Unless you are a first time buyer, the cuts are far from ground-breaking but are no doubt intended to be the Mini Budget's mini boost for the residential property market and will be gratefully received by many.
FAQs
Do the changes apply to me?
Yes, if you are:
- purchasing property in England or Northern Ireland;
- have not yet exchanged contracts; or
- have exchanged contracts but have not yet completed your purchase
When are the SDLT changes effective?
Immediately (i.e. from 23 September 2022)
Is there a cut-off date by which I need to exchange/complete?
No, the government has confirmed these cuts are permanent.
How much will I save?
This will depend on your purchase price and the rate of SDLT which applies. For a freehold property on a purchase price of £500,000:
- a first time buyer would save £6,250
- a UK buyer replacing their main residence would save £2,500
- a UK buyer purchasing an additional property would save £2,500
- a non-UK resident buyer purchasing their first property worldwide would save £2,500
- a non-UK resident buyer purchasing an additional property would save £2,500
What if I have already completed?
Unfortunately the cuts will not apply if you completed on your property purchase on or before 22 September 2022.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.