The Government have announced a cut to Stamp Duty effective immediately

The Chancellor has announced that the Government will cut Stamp Duty rates immediately on property sales in England and Northern Ireland.

Rates for a single residential property

You pay stamp duty at these rates if, after buying the property, it is the only residential property you own.

From 23 September 2022 the rates are as follows:

For example, you buy a house for £295,000:-

• 0% on the first £250,000 – £0
• 5% on the final £45,000 – £2,250

Total due £2,250

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home, this means you’ll pay:

The relief will not apply if you purchase over £625,000

For example, you buy a house for £500,000:-

• 0% on the first £425,000 – £0
• 5% on the remaining £75,000 – £3,750

Total due £3,750

New Leasehold sales and transfer

When you buy a new residential leasehold property, you pay SDLT on the purchase price of the lease.  In addition, if the total rent over the life of the lease (known as the “net present value”) is more than the SDLT threshold, you’ll pay SDLT at 1% on the portion over £250,000.   We can obviously assist you with this calculation if appropriate.

Higher rates for additional properties

You’ll usually have to pay 3% on top of the rates if buying a new residential property means you’ll own more than one property on the day of completion.

If you’re replacing your main residence you will not pay the extra 3% and that main residence has already been sold

If you have not sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates.

You can apply for a refund if you sell your previous main home within 36 months of completion

Special rates

There are different SDLT rules and rate calculations for:-

• Corporate bodies
• People buying 6 or more residential properties in one transaction
• Shared ownership properties
• Multiple purchases of transfers “linked purchases”
• Purchases that mean you own more than one property
• Companies and Trusts buying residential property

Of course, if you have any questions, we would be more than happy to assist so please do feel free to contact one of our expert Property Lawyers at either of our offices.

We are not expert Stamp Duty advisors and we would always recommend you seek expert advice if you are unclear of your Stamp Duty liabilities.

This article is for information purposes only and does not constitute legal advice.   You should seek advice before acting on any information provided above.