Stamp duty cut in bid to help house buyers

Stamp duty cut in bid to help house buyers

The government has announced a cut to stamp duty, the tax paid when people buy a property in England and Northern Ireland.

The threshold at which the tax falls due has been raised to £250,000 from its current £125,000 level.

Meanwhile the threshold for first-time buyers has been increased from £300,000 to £425,000.

The changes should remove 200,000 people from having to pay stamp duty, Chancellor Kwasi Kwarteng said.

The chancellor also increased the value of the property on which first-time buyers can claim stamp duty relief from £500,000 to £625,000.

"Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society," Mr Kwarteng told the Commons as he presented his mini-budget.

"This is a permanent cut to stamp duty, effective from today."

The changes announced affect property deals in England and Northern Ireland. Different rates apply in Scotland under the Land and Buildings Transaction Tax, and in Wales with the Land Transaction Tax.

London estate agent Jeremy Leaf said: "The stamp duty cut should encourage those at the first rung of the housing ladder to take the plunge.

He said that would be good not just for the market but for job and social mobility across the board, as well as the wider economy.

But the benefit of the stamp duty cut will soon be outweighed by rising interest rates, which will mean more costly mortgages, said Tom Bill, head of UK residential research at Knight Frank.

"Many buyers will find the impact of rising mortgage rates soon eclipses the benefit of a stamp duty cut, which will keep firm downwards pressure on prices next year."

Source:- Stamp duty cut in bid to help house buyers - BBC News