STAMP DUTY RATES CUT MEANING 200,000 BUYERS NO LONGER NEED TO PAY

New stamp duty rates unveiled

Cuts to stamp duty unveiled by Chancellor Kwasi Kwarteng as part of his mini-Budget have been welcomed by Yorkshire’s largest independent estate agent, Dacre, Son & Hartley.

The level at which homebuyers must pay the tax has doubled from £125,000 to £250,000. Stamp duty was previously charged at 2% between £125,000 and £250,000. Additional support has also been introduced for first-time buyers, meaning they will not have to pay any stamp duty on property priced up to £425,000, which is up from £300,000 previously.

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 21 offices in West and North Yorkshire, said: “It’s estimated that these changes, which take immediate effect, will mean more than 200,000 buyers no longer have to pay stamp duty. Ultimately cutting stamp duty and saving people money when they are moving, and particularly for first time buyers trying to get on the ladder, is a good thing. 

“In Yorkshire, first time buyers spending more than £300,000 on their first home are few and far between, but increasing the threshold to £250,000, will save £2,500 for anyone purchasing up to that price, which will be welcome news for buyers.” 

A further change has seen the value of a property on which first-time buyers can claim relief, increase from £500,000 to £625,000. Previously, first-time buyers purchasing a property for more than £500,000 followed the same stamp duty rules as everyone else, meaning they still had to pay tax on values over £125,000.

The new stamp duty rates are as follows:

£0 – £250,000 = 0%
£250,001 – £925,000 = 5%
£925,000 – £1,500,000 = 10%
£1,500,000 and over = 12%