Conveyancers around the country will be preparing for yet another uptick in demand as Chancellor Kwasi Kwarteng announced stamp duty land tax (SDLT) would be cut as part of his mini-budget 2022. What’s more, with Rightmove traffic soaring 10% within just one hour of the announcement, it seems as though the increased demand for British bricks and mortar has already arrived.
Kwarteng is to raise the SDLT-free threshold from £125,000 to £250,000 – and for first-time buyers (FTBs) it will rise from £300,000 to £425,000. The value of properties upon which FTBs can claim relief will also increase from £500,000 to £625,000.
This is a permanent cut effective from Friday, and will save 200,000 people from paying SDLT each year.
We’re cutting Stamp Duty Land Tax which will help more people to move, promote residential investment and boost first-time ownership.
All alongside our housing supply reforms in today’s Growth Plan. pic.twitter.com/qGVrQZwNb9
— HM Treasury (@hmtreasury) September 23, 2022
Following on from the leap in workloads during stamp duty holidays gone by, conveyancers have been preparing to become even busier since the idea was mooted earlier this week.
Click here to read reaction from around the property industry to Kwarteng’s announcement.
What else did Kwarteng announce as part of his mini-budget?
- Basic rate of income tax cut to 19% in 2023, one year earlier than planned
- Top rate of income tax abolished – top band now 40%
- National Insurance increases cancelled for 28 million people and one million businesses, and Health and Social Care Levy cancelled
- “We are getting out of the way to get Britain building” – increase disposal of surplus government land to build new homes
- “Unpick” planning restriction on infrastructure to speed up decision-making
- “Investment zones” to build new residential developments – SDLT and NI exemptions for builders
- Cancel planned increase in corporation tax – to remain at 19%. Will “save £19 billion per year” to trickle down into rest of economy
- Limit household energy bills to £2,500 per annum
- Government will subsidise wholesale energy prices for businesses and will provide a guarantee equivalent to that on households
- Energy policy aims to reduce inflation by 5%
- Bank of England to remain independent
- “New approach for a new era focused on growth”
- Aim for trend rate of growth of 2.5%
- Accelerate reforms to pension charge cap – unlock pension fund investments into innovative assets and high-growth businesses
- Remove cap on bankers’ bonuses with a package of reforms to financial services sector to follow
- Legislation to prevent strikes – TUs required to put pay offers to members
- Introduction of VAT-free shopping for foreign visitors to the UK
- Planned Alcohol duty rate increases
What is the current picture with regards to stamp duty?
HM Revenue & Customs released data on Wednesday which showed that stamp duty receipts for the period April 2022 – August 2022 are now at a total of £8.9 billion – £2 billion higher than the same period a year earlier – an increase of 29%.
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