Stamp Duty changes September 2022 explained
7th November 2022 by John Munro
In September 2022, the Chancellor announced changes to rates of Stamp Duty payable on property purchases in England and Northern Ireland. Although tax cuts announced at the same time were subsequently withdrawn, the Stamp Duty changes remain in effect.
The new rates of Stamp Duty will mean less tax will be payable for some purchasers, with others not needing to pay any at all.
The reduction is intended to help first time buyers onto the property ladder as well as encouraging buyers and investors.
What is Stamp Duty?
Stamp Duty Land Tax, often referred to simply as Stamp Duty or SDLT, is a tax payable to HM Revenue & Customs on the purchase of a property. It needs to be paid within fourteen days of completion of the purchase. The amount payable is based on the value of the property as well as whether you are a first-time buyer and whether you are buying your main home or a second or subsequent property.
If Stamp Duty is not paid on time, you will be liable to pay a penalty. Your solicitor will generally deal with the payment on your behalf as soon as your purchase has been completed.
How much is Stamp Duty?
As from 23 September 2022, Stamp Duty is payable on properties purchased for more than £250,000. This means that if you buy a property for £250,000 or less, no Stamp Duty is payable. This is an increase on the previous threshold of £125,000.
Rates are now as follows:
| Portion of purchase price | Stamp duty rate |
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| £1.5m + | 12% |
This means that if you are buying a property costing £280,000 and you are not a first time buyer or buying a second or subsequent property, Stamp Duty will be calculated as follows:
0% on the first £250,000
5% on the remaining £30,000
Total Stamp Duty payable: £ 1,500
Stamp Duty rates for first time buyers
To help first time buyers purchase a home, no Stamp Duty is payable on the first £425,000 of the purchase price. This is an increase from the previous threshold of £300,000.
Where the price is between £425,000 and £625,000, Stamp Duty of 5% is payable on the part of the price in that bracket.
Stamp Duty rates for first time buyers are:
| Portion of purchase price | Stamp duty rate |
| £0 – £425,000 | 0% |
| £425,001 – £625,000 | 5% |
To be classed as a first time buyer, you cannot have owned any property previously, either in the UK or overseas. If you are buying jointly with someone else, they must also be a first time buyer.
Stamp Duty rates for second and subsequent properties
If you already own a property and are buying another one, the reduced rates will apply, however you will still be required to pay a surcharge of 3% as was the case before the changes.
This means that the rate of Stamp Duty payable on a second or subsequent property is:
| Portion of purchase price | Stamp duty rate |
| £0 – £250,000 | 3% |
| £250,001 – £925,000 | 8% |
| £925,001 – £1.5m | 13% |
| £1.5m + | 15% |
Contact us
If you would like to speak to any of our property team about Stamp Duty, or any other queries relating to buying or selling a residential property, please contact Kelly Howe on k.howe@laceyssolicitors.co.uk or 01202 377800.
John Munro
Partner — Commercial and Residential Property
Direct dial: 01202 377839
-
“John Munro was friendly and very approachable, advising me with a clear depth of knowledge and experience. I have since recommended him and will do so if asked in the future.”
-
“Having dealt with Laceys on many a sale and purchase I’ve always found them to be efficient, knowledgeable and attentive. I wouldn’t hesitate in recommending them to family, friends and clients.”
-
“We have always been very happy with the service provided by Laceys Solicitors, in both our business legal requirements and domestic property conveyancing.”
-
“You are our solicitor Superhero! Very grateful. ”
-
“Changing solicitors is not to be undertaken lightly. However really impressed with the way that John Munro and his associates have dealt with us over the last couple of years in a variety of complex property related transactions and on the commercial and personal front as well. We look forward to working with them going forward.”
John joined Laceys in 2001 on a training contract, having completed a Post Graduate Diploma in Law in 2000, and qualified as a solicitor in 2003. He is now the Head of the Commercial and Residential Property Departments.
He is also the firm’s Senior Responsible Officer under the Law Society Conveyancing Quality Scheme (CQS) with overall responsibility for the management of the property team and their delivery of the excellent service that our clients have come to expect.
John acts in his own capacity for a number of commercial property owners, developers and investors, but also allocates time to ensure his team are up to speed with changing law and professional regulations and clients are provided with members of the team who possess the right skills to deal with their individual requirements, delivering projects in the most time and cost-efficient manner.
Outside of work John seems to spend a great deal of time ferrying his children around but occasionally gets to put his feet up and listen to his eclectic collection of vinyl. He is also not averse to a good cheeseboard and a glass of IPA.
Related articles
First Time Buyers: 5 Essential Tips for a Successful Home Purchase
Buying your first home is an exciting time, but it can also be daunting. We outline our...
What can delay exchange of contracts?
If you are buying or selling a property, it can be frustrating to find that the exchange...