The UK chancellor, Kwasi Kwarteng, has announced a permanent stamp duty reduction for property purchases in England and Northern Ireland – a move that forms part of a mini-budget critics say will reward the rich more than those on lower incomes.Under the new system, effective from Friday, the first £250,000 of a property’s value will be exempt from stamp duty.
Buyers will pay 5% of the value of the home from £250,001, while the portion between £925,001 and £1.5m will continue to be taxed at 10%.
Any property worth more than that will be subject to stamp duty rates of 12%.The threshold at which first-time buyers begin to pay stamp duty will increase from £300,000 to £425,000, and the maximum value of a property on which first-time buyers’ relief can be claimed will also increase, from £500,000 to £625,000.Here, four people from different parts of the country explain how the changes could affect them.Ellie Stevens, a local government grant manager, held off on exchanging on her first property purchase in the hope that a stamp duty cut would be announced, and will now save £5,000.Stevens and her partner, a graphic designer, both 29, have been renting in Bristol for seven years, and have been trying to buy a home for a year.“This cut is really good news for us personally.
It’s a year’s-worth of savings for me. But I do think this will make it harder for people like us to buy a house in the long term.Read more on theguardian.com