In a landmark change, the new Chancellor Kwasi Kwarteng has increased the thresholds at which Stamp Duty Land Tax needs to be paid.

In a bid to get the housing market moving, the Government has reduced the tax burden of buying residential property, by increasing the threshold above which Stamp Duty Land Tax (SDLT) must be paid in England and Northern Ireland.

This has risen from £125,000 to £250,000 on all properties, while the relief given to first-time buyers will increase from £300,000 to £425,000.

The maximum value of a property on which first-time buyers’ relief can be claimed has also increased from £500,000 to £625,000.

The Government estimates that this will help to reduce the overall cost of buying a home – ensuring around 200,000 homebuyers, including 60,000 first-time buyers, will be taken out of SDLT entirely.

This measure does not extend to Scotland and Wales, as SDLT is a devolved issue, but they will also receive funding through agreed fiscal frameworks to support additional property purchases.

Gunduz Misiri, Head of Commercial and Residential Property at Mackrell.Solicitors, said: “This is a bold move and should help many more people get on to the property market, as well as helping existing homeowners move up the ladder and purchase new homes.

“I am sure many homeowners and property investors will appreciate this measure.”

To find out more about Mackrell.Solicitors’ residential conveyancing and property services, please contact Gunduz Misiri by calling +44 (0) 20 7240 0521 or emailing gunduz.misiri@mackrell.com

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