From October 2022, changes to Stamp Duty Land Tax (SDLT) will be implemented as announced by the Government on Friday 23^rd September 2022. These changes will affect all residential sales in the United Kingdom.

These changes mean that there will be considerable savings which will have a positive significant impact on every first-time buyer!

These changes include:

1. Stamp Duty will not need to be paid until you reach the £250,000 (doubled from £125,000) limit, this is an average 5% saving, depending on the total cost of the home you are buying.

Example

You are purchasing a house for £440,000 in October 2022. The SDLT due will be calculated as follows:

• 0% on the initial £250,000 = £0
• 5% on the remaining £190,000 = £9,500
• Total SDLT = £9,500

2. If you are a first-time buyer, the threshold has been raised from £300,000 to £425,000. If the cost of the property is over £625,000 you unfortunately cannot claim the relief.

Example

You are a first-time buyer and purchase a residential property for £550,000. The SDLT owed will be calculated as follows:

• 0% on the first £425,000 = £0
• 5% on the remaining £125,000 = £6,250
• Total SDLT = £6,250

Overall, these changes mean that everyone that buys a residential home as of 23^rd September 2022 stands to make a significant saving on their Stamp Duty Land Tax. Further information on Stamp Duty can be found via the following link; Stamp Duty Land Tax: Residential property rates – GOV.UK (www.gov.uk)