The Growth Plan 2022 – Stamp Duty Land Tax

The Chancellor announced a cut to Stamp Duty Land Tax (SDLT) on residential property purchases in England, effective from midnight on 23rd September.

Currently there is a nil rate band of £125,000, 2% is payable on the next £125,000, and 5% on the next £675,000. Higher rates of 10% and then 12% are payable on the purchase price over £925,000 and £1.5 million respectively. From 24th September, the nil rate band is doubled to £250,000 and the 2% band is abolished, but all other bands and rates remain unchanged. This results in a saving of £2,500.

A further announcement may reduce the amount of SDLT payable by first time buyers, who will now pay no SDLT on the first £425,000, rather than £250,000. Properties costing up to £625,000 will now be eligible for relief, rather than £500,000.

The amount of SDLT payable on commercial or mixed-use properties remain unchanged, with a nil rate band of £150,000. A further point to note is that the additional 3% SDLT payable by owners of more than one dwelling remains unchanged. This means the purchaser of a buy-to-let property for less than £250,000 will still pay SDLT.