On Friday 23rd September 2022, Chancellor Kwasi Kwarteng announced changes to stamp duty land tax (SDLT)

The changes, which came into force with immediate effect, see the threshold at which stamp duty becomes payable rise from £125k to £250k, meaning stamp duty is not payable on the first £250k of a house purchase. In the case of first-time buyers, this threshold is even greater, with the first £425k of any house purchase being free from stamp duty tax.

How much stamp duty land tax will I pay?

The new thresholds are:

  • 0%: £0 – £250,000 (or £0 – £425,000 for first time buyers*)
  • 5%: £250,001 – £925,000
  • 10%: £925,001 – £1,500,000
  • 12%: £1,500,001 and over

*the first time buyer discount is only applicable on properties with a value of £625,000 which has been increased from £500,000.

Currently, the changes are permanent with no indication that this is a temporary measure. Therefore, any future reductions in thresholds are likely to be given with some warning, meaning homebuyers would have at least some notice of any impending changes.

The government say doubling the nil-rate band will enable more people to move home each year, in turn boosting household consumption, which will increase confidence in the economy and support the hundreds of thousands of jobs and businesses which rely on the property market.

These cuts will only apply to England and Northern Ireland, with home buyers in Scotland paying land and buildings transaction tax, set by the Scottish government.

In Wales, purchasers pay Land Transaction Tax, set by the Welsh government.


Buy-to-let and second homes stamp duty

The higher rates from 23 September 2022

Property or lease premium or transfer value                         SDLT rate

Up to £250,000                                                                                   3%

The next £675,000 (the portion from £250,001 to £925,000) 8%

The next £575,000 (the portion from £925,001 to £1.5 million)         13%

The remaining amount (the portion above £1.5 million)                     15%


If you own a house which is your main residence. On the 23 September 2022 you buy an additional residential property for £300,000. On completion of the purchase you own more than one property. The SDLT you owe on the purchase will be calculated as follows:

3% on the first £250,000 = £7,500

8% on the final £50,000 = £4,000

Total SDLT = £11,500

If you have any questions about Stamp Duty or any other aspect of buying or selling a property, contact us through our website, or call our Conveyancing Team and we’ll be happy to help you.