The chancellor, Kwasi Kwarteng, has confirmed a permanent stamp duty cut, with no tax to be paid on properties up to the value of £250,000.Kwarteng announced the policy in a mini-budget on Friday, almost a year after the last stamp duty holiday ended.
He also increased the threshold for first-time buyers to £425,000. Here we explain the changes in full.Stamp duty is a tax paid by homebuyers in England and Northern Ireland, based on the value of the property they are buying.
The government has announced a permanent change to how the tax works, with the threshold at which buyers have to pay the duty rising from £125,000 to £250,000.Previously, the first £125,000 of a property’s value was tax free.
Buyers were then charged 2% of the value of the property above that threshold up to £250,000, and 5% on the portion between £250,001 and £925,000.Under the new system, the first £250,000 of a property’s value will be exempt, and buyers will pay 5% of the value of the home from £250,001.Read more on theguardian.com