Buying a house is a major achievement and milestone. Recent changes to Stamp Duty aim to boost the number of people getting onto or moving up the property ladder.
Under the new system, in England and Northern Ireland, the first £250,000 of a property’s value is exempt from Stamp Duty, up from £125,000. Buyers then pay 5% of the value of the home from £250,001 and 10% from £925,001.
First-time buyers now pay no Stamp Duty on the first £425,000 of a property purchase, up from £300,000 before the changes. In total, the government claims that 200,000 more people will be taken out of paying the tax altogether.
Announcing the measure, then-Chancellor Kwasi Kwarteng commented, “Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots.”