“Cut To Stamp Duty in his Mini-Budget” was announced BY Chancellor Mr. Kwasi Kwarteng.
- 200,000 people would now avoid having to pay the tax, The new Chancellor, speaking in the House of Commons this morning,
- Mr. Kwarteng said: Home possession is the most common way for people to own an asset, giving them a stake in the success of our economy and society.
- “So, to promote the economy, increase confidence and help families aspiring to own their own home, I can announce that we are cutting income tax and stamp duty. At present, there is no stamp duty to pay on the first £125,000 of a property’s value. We are doubling that –up to £250,000.”
- Kwarteng also said the stamp duty threshold for first-time buyers would be increased from £300,000 to up to £425,000.
- He also added: “We’re going to increase the value of the property on which first-time buyers can claim relief, from £500,000 to up to £625,000.
- “The steps have taken today mean 2lac more people will be taken out of paying stamp duty completely. This is a permanent cut of tax or stamp duty, effective from today.”
What is stamp duty or tax?
Stamp duty is a duty or tax paid by anyone who purchases a property.
How it is work and how much have to pay varies depending on the country of the UK, in which the property is being bought, and the price of the property.
What are the rules of tax in Scotland and wales?
In Scotland, buyers pay Lands and Buildings Transaction Tax or duty, and the rate is as follow:
- £0-£145,000 (£175,000 for first-time buyers) – 0% tax
- £145,001-£250,000 – 2% tax
- £250,001-£325,000 – 5% tax
- £325,001-£750,000 – 10% tax
- £750,001+ – 12% tax
In Wales, buyers pay Land Transaction Tax, and the rate is as follows:
- £0-£180,000 – 0% tax
- £180,001-£250,000 – 3.5% tax
- £250,001-£400,000 – 5% tax
- £400,001-£750,000 – 7.5% tax
- £750,001-£1.5m – 10% tax
- £1.5m + – 12% tax
Landlords in Scotland and Wales pay an extra 4% tax on top of standard rates.