Chancellor Kwasi Kwarteng’s stamp duty cut: What does it mean for home buyers and when does it come into effect
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As part of today’s ‘mini-budget’ announcement, new chancellor Kwasi Kwarteng announced a cut to stamp duty.
The news came among other announcements that included income tax cuts and a reversal of the proposed National Insurance increase.
Speaking in the House of Commons, the Chancellor explained how the stamp duty cut was not a temporary measure. .
He said: "Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society.
"This is a permanent cut to stamp duty, effective from today."
It is hoped that the cut to stamp duty will allow more people to buy their own homes.
What is stamp duty?
In Scotland, the tax works differently and you will need to pay what is known as a Land and Buildings Transaction Tax.
The amount of SDLT you pay depends on what the land/ property is used for, for example if it is residential, non-residential or mixed use.
A SDLT must be paid to HMRC within 14 days of a house move being completed.
What does the change in stamp duty mean?
The alteration in stamp duty means that the level at which house-buyers will need to pay duty on properties has risen.
This will double from £125,000 to £250,000, whilst first time buyers will receive a boost as they will only need to pay stamp duty on properties worth £450,000 rather than the old cap of £300,000.
When does the stamp duty cut come into effect?
The Chancellor announced the stamp duty cut was effective immediately so anyone already in the process of buying a home and subject to the land tax, could benefit from the changes.