In an effort to help people move, promote residential investment and boost first-time ownership Chancellor Kwasi Kwarteng has confirmed a stamp duty cut, effective from 23 September 2022.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax levied on those buying land and property above a certain value and is paid to HMRC. The amount of SDLT you pay is dependent on a number of factors including:
- The purchase price of the property
- If you are a first-time buyer
- Whether or not you are a UK resident
- If you already own property and are purchasing additional property
Following on from the Chancellor’s mini-budget announcement on Monday the price at which you start to pay SDLT has now doubled from £125,000 to £250,000.
The New Rates in Northern Ireland
- Nil-rate threshold now £250,000
- 5% between £250,001 – £925,000
- 10% between £925,001 – £1,500,000
- First time buyer nil-rate threshold from £300,000 to £425,000
First Time Buyer?
If you are a first-time buyer of a residential property, you can claim relief if the purchase price is no more than £625,000.
That means you’ll pay:
- 0% on the first £425,000
- 5% on the remainder up to £625,000
Investment Property?
The changes above also have an impact on investment properties and those wishing to purchase a second home as the threshold has now been increased from £125,000 to £250,000 at a rate of 3% and 8% thereafter up to £925,000.
Other Changes in the Market – Northern Ireland Co-Ownership
Northern Ireland Co-Ownership have increased their Property Value Limit (PVL) from £175,000 to £190,000 with a focus on helping first-time buyers and those over 55 get onto the housing market.
Shared ownership can provide an alternative to the private rented sector and Northern Ireland Co-Ownership remain committed to helping those who may not otherwise be able to afford a home of their own.
We are hopeful that these recent announcements will have a positive impact on the market in Northern Ireland and provides much needed support to home ownership and economic growth.
Please contact the property department today for advice on buying or selling your home on [email protected] or call 028 9181 1538.
028 9181 1538 