The much-rumoured Stamp Duty cut has been confirmed, increasing the thresholds before the property tax is paid.
Delivering his mini-Budget this morning, Chancellor Kwasi Kwarteng increased the point at which Stamp Duty is charged on property purchases from £125,000 to £250,000 for home movers.
The threshold for first-time buyers will increase from £300,000 to £425,000 and can be used on purchases worth up to £625,000.
The changes will apply immediately and it is estimated that the cuts will lift 200,000 homebuyers every year out of paying the tax altogether.
The Growth Plan also promised to release more Government land to support housebuilding and to remove planning restrictions to boost supply.
Kwarteng said: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.
“This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.
“Cuts to Stamp Duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.
“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”
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The asset bubble continues to inflat then.
When it bursts the people will realise that the gas used has come from the lower intestine of our politicians. The stench will be sickening.
?
"Cuts to Stamp Duty will get the housing market moving" This will stir FTBs into a frenzy yes, but if there is little to buy or chains remain open for ever, it's all pretty meaningless, whilst house prices at the lower end get heated up at the same time. Developers will be rubbing their hands though, and putting their prices up 5% this afternoon.
If you wanted to get the market moving you should have reduced rates across the board (which are fundamentally too high anyway) to stimulate activity in the whole market, so sellers are teased out of their cost of living bunkers with the prospect of a discount as well.
Is anyone aware of how this will affect people completing their purchase transactions today?
Acc to gov uk website new rates apply from midnight, 11 hours ago.
The cut applies from midnight, so completions today can benefit. It is the “effective date” not exchange, which is relevant.
Stamp Duty should be paid by the Vendor..they have had the capital appreciation in the asset and its would stop property flipping
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