Stamp duty SLASHED to help get families on the housing ladder

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Stamp duty SUCCESSFUL to get families up the housing ladder: NO tax to pay on the first £250,000 of a home’s value and new buyers pay NOTHING on buildings costing up to £425,000

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Stamp duty has been reduced today as the government wants to boost the housing market and help more families get their first home.

The chancellor raised the threshold at which stamp duty is paid from the first £125,000 of a property’s value to £250,000, good news for people growing taller.

And there was even more good news for new buyers, who won’t have to pay stamp duty on property bought for £425,000 or less, rather than £300,000. They can also claim exemption of the first £625,000, an increase of £500,000.

Chancellor Kwasi Kwarteng told the House of Commons today that the move would “support growth, boost confidence and help families wanting to own their own home”.

“The steps we have taken today mean that 200,000 more people will not have to pay stamp duty at all. This is a permanent reduction in stamp duty, effective today,” he said.

The chancellor raised the threshold at which stamp duty is paid from the first £125,000 of a property's value to £250,000, good news for people growing taller.

The chancellor raised the threshold at which stamp duty is paid from the first £125,000 of a property’s value to £250,000, good news for people growing taller.

HM Revenue & Customs statistics released today show stamp duty receipts up 29 per cent for April-August to £2bn

HM Revenue & Customs statistics released today show stamp duty receipts up 29 per cent for April-August to £2bn

HM Revenue & Customs statistics released today show stamp duty receipts up 29 per cent for April-August to £2bn

Stamp Duty is determined by the value of a property and can be up to tens of thousands of pounds.

The chancellor raised the threshold at which stamp duty is paid from the first £125,000 of a property’s value to £250,000. There was even more good news for new buyers, who don’t have to pay stamp duty on properties costing less than £425,000.

Last year, a stamp duty holiday that former Chancellor Rishi Sunak introduced during the Covid crisis came to an end. During the holidays, there were spikes in demand as buyers rushed to maximize their savings.

According to the latest figures from the Office for National Statistics (ONS), average house prices in the UK rose by 15.5 per cent a year in July, the largest increase in 19 years.

The year-on-year jump in inflation was mainly due to a “base effect” of the price declines seen around this time last year, reflecting changes in the stamp duty holiday, the report said.

The average UK house price in July 2022 was £292,000, which is £39,000 higher than at the same time last year.

Finance and real estate experts have warned today that house prices will rise if stamp duties are abolished.

Jamie Morrison, partner at accounting firm HW Fisher, said: ‘Slashing Stamp Duty will open up the UK property market to foreign investors.

Given the strength of the dollar and dollar-pegged currencies – expect a flood of foreign real estate investors. While this is a positive move for UK Inward Investment, greater challenges remain with interest rates.

‘For example, a 0.75 percent rise in interest would add more than £1,250 to the annual cost of maintaining a £200,000 mortgage on that property. This is an increase that many cannot afford.’

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