Stamp duty cut

Government has announced a cut to stamp duty

The Government has announced a cut to stamp duty, which is the tax you pay when you buy a property in England and Northern Ireland.

The threshold at which the tax must be paid has been increased to £250,000 from its current level of £125,000.

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

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

The Chancellor also increased the value of a property on which first-time buyers can get 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 announced details of his mini-budget.

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

Different rates operate in Scotland under the Land and Buildings Transaction Tax, and also in Wales with the Land Transaction Tax.

Under the changes presented by the chancellor, anyone spending £250,000 on a property in England or Northern Ireland will avoid £2,500 in stamp duty charges as before it was charged at 2% between £125,000 and £250,000.

Anyone apart from first-time buyers spending £300,000 will now be charged £2,500, rather than the previous £5,000.

Find out how much your house is worth; book a free property valuation and consultation with Preston Baker Estate Agents.