28 September 2022

Stamp duty rates cut with immediate effect


Permanent cuts in Stamp Duty Land Tax (SDLT) across England and Northern Ireland came into effect on 23rd September.

  • The threshold at which buyers have to pay stamp duty has now doubled from £125,000 to £250,000. 
  • And there’s even better news for first time buyers who will not pay stamp duty until a property exceeds a value of £425,000, previously this threshold was £300,000.

What is Stamp Duty?

Stamp duty is a government tax on residential property or land purchases over a certain price within England or Northern Ireland. Separate tax system exists in Wales and Scotland for property transactions.

The tax applies whether you are buying with cash or a mortgage and applies to both freehold and threshold properties

What are the new stamp duty rates?

There are several bands for stamp duty and the tax is calculated based on the part of the property purchase falling within each band.

The new stamp duty rates are:

Property price% Rate
Up to £250,0000%
The next £675,000 (the portion from £250,001 to £925,000)*5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

*unless you are a first time buyer, you will then only pay 5% on the amount between £425,000 and £925,000. If your first home purchase costs over £625,000 then you won’t apply for first time buyers relief.

Previously the rates were:

Property price% Rate
£0 – £125,0000%
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

Source: GOV.UK

Do the same rates apply for second homes?

If you are purchasing a second home over the value of £40,000 and not selling your first home then you have to pay an additional 3% stamp duty to the new rates.

This rate doesn’t apply to mobile homes, caravans or house boats however.

Why have the rates decreased?

The rates cut are part of a wider Government scheme to improve the economy amidst concerns about affordability and will benefit both first time buyers, home movers and second property owners alike. 

Chancellor Kwasi Kwarteng said: “Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots.

Despite concerns about increasing interest rates the stamp duty cuts represent a significant saving in the home buying process.

The Chancellor also announced plans to boost the supply of housing through releasing more land for new build developments. This will be done through increasing the disposal of surplus government land for housing developments.

What this means for buyers in Northern Ireland:

According to Ian Creighton, from the law firm Wilson Nesbitt the announcement of lower stamp duty rates on residential properties will have a significant impact in the local marketplace, “The change to the lower end of the stamp duty relief to £250k makes a very material difference to the Northern Ireland housing market, with 68.4% of the properties currently listed for sale being marketed for £250k or less.”

He adds that “This is reflected in our own internal statistics, which reveal that in the last three months 75.6% of new enquiries related to properties up to a value of £250k. The increase from £125k to £250k means that 50.1% of those enquirers would now have a £0 stamp duty bill compared to before the change.

Useful Links:

To view almost 4,000 homes for sale in Northern Ireland that are under £250,000 and which are now all exempt from stamp duty visit:

To get a free property legal expenses quotation visit: 

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