Chancellor Kwasi Kwarteng announced changes to thresholds at which Stamp Duty Land Tax (SDLT) applies in his mini-budget on 23 September 2022.

The changes all take place at midnight on 23 September 2022.

They apply to the purchase of Residential property in England and Northern Ireland only.

  • Increasing the Residential nil-rate threshold from £125,000 to £250,000.
  • Increasing the nil-rate threshold for First Time Buyers’ Relief from £300,000 to £425,000.
  • Raising the maximum amount that an individual can pay for a home while remaining eligible for First Time Buyers’ Relief, from £500,000 to £625,000.

This measure does not apply to Scotland or Wales which operate their own land transactions taxes.

Legislation will be introduced in the Stamp Duty Land Tax (Reduction) Bill to amend Table A of section 55(1B) (for purchases other than higher rates purchases) as follows:

Relevant considerationPercentage
Up to £250,000 Nil
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

 

Table A at paragraph 2(3) of Schedule 5 (for rent) as follows:

Relevant considerationPercentage
Up to £250,000 Nil
Over £250,000 1%

 

Table A at paragraph 1 of Schedule 4ZA (for higher rates purchases) as follows:

Relevant considerationPercentage
Up to £250,000 3%
The next £675,000 (the portion from £250,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%


Table A at paragraph 4 of Schedule 6ZA (for First Time Buyers’ Relief) as follows:

Relevant considerationPercentage
Up to £425,000 Nil
Any remainder not exceeding £625,000 5%


In addition, the £500,000 specified in paragraph 1(2) of Schedule 6ZA is increased by £125,000 to £625,000. The effect will be to restrict First Time Buyers’ Relief to purchases where the amount paid is £625,000 or less, instead of the £500,000 or less, currently applicable.

Useful guides on this topic

SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies?  What garden and grounds are subject to higher rates of SDLT?

Mini-budget 2022: at a glance
A summary for SMEs and their owners

External links

The Growth Plan 2022: Factsheet on Stamp Duty Land Tax

HMRC: SDLT policy paper


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