ACCA – Autumn Statement 2022 – Stamp Duty Land Tax Changes

We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

On 23 September 2022, the government increased the nil-rate threshold of Stamp Duty Land Tax (SDLT) from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold paid by first-time buyers from £300,000 to £425,000.

The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000. This will now be a temporary SDLT reduction. The SDLT cut will remain in place until 31 March 2025 to support the housing market and the hundreds of thousands of jobs and businesses which rely on it.

Legislation will be introduced in the Stamp Duty Land Tax (Reduction) Bill to amend:

Table A of section 55(1B) (for purchases other than higher rates purchases) as follows:

Table A at paragraph 2(3) of Schedule 5 (for rent) as follows:

Table A at paragraph 1 of Schedule 4ZA (for higher rates purchases) as follows:

Table A at paragraph 4 of Schedule 6ZA (for First Time Buyers’ Relief) as follows:

In addition, the £500,000 specified in paragraph 1(2) of Schedule 6ZA is increased by £125,000 to £625,000. The effect will be to restrict First Time Buyers’ Relief to purchases where the amount paid is £625,000 or less, instead of the £500,000 or less currently applicable.