Chancellor Kwasi Kwarteng’s stamp duty cut: What does it mean for home buyers and when does it come into effect

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The announcement was made in the House of Commons on 23 September

As part of today’s ‘mini-budget’ announcement, new chancellor Kwasi Kwarteng announced a cut to stamp duty.

The news came among other announcements that included income tax cuts and a reversal of the proposed National Insurance increase.

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Speaking in the House of Commons, the Chancellor explained how the stamp duty cut was not a temporary measure. .

He said: "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.

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

It is hoped that the cut to stamp duty will allow more people to buy their own homes.

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What is stamp duty?

Stamp Duty Land Tax (SDLT) must be paid if you purchase land or a property costing more than a certain amount in England and Northern Ireland.

In Scotland, the tax works differently and you will need to pay what is known as a Land and Buildings Transaction Tax.

The amount of SDLT you pay depends on what the land/ property is used for, for example if it is residential, non-residential or mixed use.

A SDLT must be paid to HMRC within 14 days of a house move being completed.

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What does the change in stamp duty mean?

The alteration in stamp duty means that the level at which house-buyers will need to pay duty on properties has risen.

This will double from £125,000 to £250,000, whilst first time buyers will receive a boost as they will only need to pay stamp duty on properties worth £450,000 rather than the old cap of £300,000.

When does the stamp duty cut come into effect?

The Chancellor announced the stamp duty cut was effective immediately so anyone already in the process of buying a home and subject to the land tax, could benefit from the changes.

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