First time buyers are receiving an extra helping hand. Previously, first time buyers who were purchasing a home priced at less than £500,000 would not pay stamp duty on the first £300,000. Following today’s announcement, the maximum house price to access the first time buyer stamp duty rates will increase to £625,000 and first time buyers will not pay stamp duty on the first £425,000.
How will the stamp duty reduction help you move?
Stamp duty in England is made up of different ‘bands’, the first being a nil rate. This means that you previously would not pay stamp duty on the first £125,000 of the value of your new home.
In September 2022, the UK Government announced a permanent increase to the nil rate band up to the first £250,000 of the value of your new home.
|
Property Value |
Standard Residential Rates |
|
£0 – £250,000 |
0% |
|
£250,001 - £925,000 |
5% |
|
£925,001 - £1,500,000 |
10% |
|
£1,500,000+ |
12% |
If you're buying an additional property you will pay 3% on top of the standard rate stamp duty.
How much will this save home movers?
These measures will reduce stamp duty bills across the board for home movers by up to £2,500. First time buyers may be able to save £11,250, meaning that buying your dream Cala home could be more attainable than you think.
The table below shows how much you could save.
|
|
Stamp duty for standard home mover (£) |
Stamp duty for first time buyer (£) |
||||
|
Price (£) |
As at 22 September 2022 |
As at 23 September 2022 |
Saving (£) |
As at 22 September 2022 |
As at 23 September 2022 |
Saving (£) |
|
200,000 |
1,500 |
0 |
1,500 |
0 |
0 |
n/a |
|
400,000 |
10,000 |
7,500 |
2,500 |
5,000 |
0 |
5,000 |
|
600,000 |
20,000 |
17,500 |
2,500 |
20,000 |
8,750 |
11,250 |
Use the Government’s Stamp Duty Calculator to find out how much stamp duty you will pay.
