Mini-Budget 2022: Stamp Duty Land Tax
It has been announced that effective from 23 September 2022, the residential rates of Stamp Duty Land Tax (SDLT), which are applied before any additional surcharges (i.e. additional dwellings (3%) or non-residents (2%)) are to be permanently reduced by increasing the initial nil-rate band from £125,000 to £250,000.
The revised ‘Table A’ rates are set below.
| Property value | Rate Prior to 23/9/22 | Rate 23/9/22 onwards |
| £0-£125,000 | 0% | 0% |
| £125,000-£250,000 | 2% | 0% |
| £250,000-£925,000 | 5% | 5% |
| £925,000-£1,500,000 | 10% | 10% |
| £1,500,000+ | 12% | 12% |
In addition, the purchase price qualifying for first time buyer’s relief has increased from £500,000 to £625,000 with the nil bands for the relief increased to £425,000 from £300,000. This will mean that based on an average London dwelling price of £543,000 (Land Registry July 2022), that acquisitions in the South East are now more likely to qualify to this relief.
The maximum benefit under these changes for individual purchasers who have already owned a property or corporates buying residential is £2,500 per property. While the overall maximum saving for first time buyers who now buy a residential property of £625,000 is £11,250.
From the real estate industry perspective, these changes will reduce the fiscal drag of property transactions, however this measure does not alter the more fundamental driver affecting the market of overall housing supply. The Chancellor has made promises to prioritise streamlining the planning system and accelerating National Infrastructure projects, clearly meaningful actions on these measures would have a longer lasting impact on the housing market.
For any queries in the meantime, please contact Caroline Fleet or your usual Crowe contact.
