Will Liz Truss slash Stamp Duty?
Will Liz Truss slash Stamp Duty?
On Friday 23rd September 2022 the Chancellor of the Exchequer, Kwasi Kwarteng, along with Prime Minister Liz Truss, is to reveal an emergency budget to help the UK deal with the cost-of-living crisis we are currently facing.
Stamp Duty - Latest Update:
As reported by The Times newspaper this morning (21 Sept), it is believed that the budget could slash the Stamp Duty Land Tax payable when purchasing property. If this belief is correct, it will be the third cut on Stamp Duty since the start of the decade, following the Covid-19 reliefs provided by Rishi Sunak back in July 2020 and July 2021.
The Covid-19 reliefs did only affect residential properties and it is not yet known to what extent, if any, Mr Kwarteng will roll out the tax cuts and whether any cuts would also affect non-residential properties. It is, however, likely that any cuts will be time limited which may cause a short surge of property transactions as people try to benefit from the announcement.
Current Stamp Duty rates
Residential Property Rates:
|
Property of lease premium transfer value |
SDLT rate* |
|
Up to £125,000 |
Zero |
|
£125,001 - £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 - £1.5m |
10% |
|
£1.5m + |
12% |
*N.B. the rates do differ for first-time buyers, leasehold purchases and additional properties
Non-residential Property Rates:
|
Property of lease premium transfer value |
SDLT rate* |
|
Up to £150,000 |
Zero |
|
£150,001 - £250,000 |
2% |
|
£250,000 + |
5% |
*N.B. the rates do differ for leasehold purchases
Summary
More will become apparent as the week progresses, and once we have the full details of Mr Kwarteng’s emergency budget we will provide an update on any cuts to Stamp Duty that are made.
Our Commercial Property and Residential Property teams are always at hand to deal with your concerns so please do contact us if you have any queries.
Nathan Mee, Commercial Property & Business Law
