The UK’s recently appointed Chancellor, Kwasi Kwarteng, has this morning announced changes to the rates of Stamp Duty Land Tax payable in England and Northern Ireland. In a nutshell:
- The nil rate band has increased to £250,000 (from £125,000);
- The nil rate band for First Time Buyers has increased to £425,000 (from £300,000);
- The property value on which First Time Buyer relief may be claimed has increased to £625,000 (from £500,000).
A straightforward increase on the existing tax-free framework which all purchasers will benefit from and first-time buyers in particular.
Whatever one’s political views or take on the property market, this will no doubt provide a boost to momentum and sentiment in the whirlwind of headwinds and tailwinds we have all experienced over the last few years.
Based on previous changes to stamp duty rates, we expect this change also to apply to contracts that have already exchanged (buyers should check with their solicitor for confirmation). Hopefully good news for our existing clients, especially those who have exchanged off-plan.