MONEY expert Martin Lewis has revealed what the end of the Stamp Duty cut will mean for first time buyers.
In the Autumn Statement today, Chancellor Jeremy Hunt said the cut will be scrapped on March 31, 2025.
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Mr Lewis tweeted: “So while currently you pay no Stamp Duty until property costs £250,000 (£400,000 for first time buyers) it will go back to £125,000 (and £300,000 for first time buyers).”
It follows a recent cut that means that thousands of homebuyers pay less tax when buying a property.
Jeremy Hunt confirmed in a statement a few weeks ago that the recent cut to Stamp Duty would remain in place.
But now he has set a date for it to end, as he announced a raft of measures aimed at balancing the books.
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He said: “The OBR expects housing activity to slow over the next two years, so the Stamp Duty cuts announced in the mini-budget will remain in place but only until March 31 2025.
“After that, I will sunset the measure, creating an incentive to support the housing market and all the jobs associated with it by boosting transactions during the period the economy most needs it.”
Mr Hunt also announced:
Stamp Duty land tax (SDLT) is a lump sum payment you have to make when purchasing property over a certain threshold.
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Ex-Chancellor Kwasi Kwarteng announced the cut to stamp duty in his mini-budget in September in a bid to boost economic growth.
The threshold at which the duty was paid for first-time buyers was £300,000. But that is now £425,000 following the cut.
The maximum value of a property on which first-time buyers’ relief can be claimed also increased from £500,000 and is now £625,000.
You pay 5% tax between £425,001 to £625,000.
If you purchase a property over £625,000 you don’t get the first-time buyer tax relief.
How much buyers pay depends on the price and type of property, including if it’s residential use or non-residential or mixed-use.
First-time buyers can save up to £6,250.
It’s not just new homeowners who are benefitting from the tax cut until 2024 either.
For homebuyers who already own a property the thresholds are different, but were also changed.
Before the cut, no stamp duty was paid on the first £125,000 of any property purchase.
That’s now double at £250,000 for all home purchases.
You then pay 5% on anything over this amount and 10% on homes worth over £925,001.
Stamp Duty is due on the portion over the thresholds and not the full amount.
A surcharge of 3% is due on properties that are second homes.
Property taxes are different ion Scotland and Wales.
