Kwarteng announces permanent stamp duty cut
By Monidipa Fouzder >>
(23 September 2022)
Stamp duty will be cut as part of measures unveiled by the chancellor of the exchequer today to boost the economy.
Kwasi Kwarteng said stamp duty cuts, which apply to properties in England, would help get the housing market moving again and help first-time buyers put down roots. ‘The steps we have taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty effective from today,’ he told the House of Commons chamber this morning.
The threshold at which buyers begin to pay stamp duty will rise from £125,000 to £250,000. HM Treasury says a typical family moving into a semi-detached property will save £2,500 on stamp duty.
First-time buyers will not have to pay stamp duty if the property costs less than £425,000. The value of the property on which first-time buyers can claim relief will be raised from £500,000 to £625,000.
HM Treasury said doubling the nil-rate band will enable up to 29,000 more people to move home each year, ‘in turn boosting household consumption, which will increase confidence in the economy and support thousands of businesses who rely on the property market. This includes, for example, estate agents, cleaners, builders, contractors, removals companies, plumbers, decorators and others’.
Commenting on today’s announcement, the Council for Licensed Conveyancers, a specialist regulator, said: ‘We don’t expect there to be a spike in activity like the one we saw with the pandemic SDLT holidays, but the same advice applies: Firms should always be careful to ensure that they manage workloads to maintain the highest standards of service and advice to clients.’
Ahead of today’s announcement, the Gazette spoke to solicitors on what a stamp duty cut would mean for the conveyancing sector.
(Courtesy: The Law Society Gazette)