Stamp Duty Reduction Calculator: How Much Will You Pay After the Mini Budget?

Chancellor Kwasi Quarting has announced a stamp duty cut in his mini-budget, but homebuyers hoping for an overhaul will be disappointed.

The minimum at which immediate and permanent stamp duty starts will be doubled from £125,000 to £250,000 however prices will not change meaning the maximum saving is £2,500.

For someone buying an average home of £270,000, that means their bill has been reduced from £3,500 to £1,000.

First time buyers will see their exemption level rise from £300,000 to £425,000 and pay no stamp duty up to this level – saving them £6,250 if they buy a £4,250,000 home.

The step in the so-called mini-budget is a cut to one of Britain’s least favored taxes, which has a much bigger impact on some buyers than others.

While first time buyers get stamp duty exemption and those buying for an average of £270,000 in the UK face bills of around £3,500, people buying family homes in more expensive areas can face bills running into the tens of thousands. of pounds sterling.

But the permanent reduction of the stamp duty mini-budget, so that nothing is paid up to £250,000, will save people much less than Rishi Sunak’s previous stamp duty holiday, which eliminated the tax of up to £500,000.

Under the Mini Budget Act, buyers will save a maximum of £2,500, while they can save a maximum of £15,000 under the Snack’s stamp duty holiday.

Stamp duty rates under the new system
Squad Land tax rate, stamp duty Additional price for landlords/second homes
First time buyers pay 0% to £425,000 then normal rates apply
£0 – £250k 0% 3%
£250,001 – £925k 5% 8%
£925,001 – £1.5m 10% 13%
£1.5m or more 12% 15th%
*No stamp duty payable on property transactions costing less than £40,000 as this is considered low value and is not reported to HMRC
Seal duty rates under the old system
Squad Land tax rate, stamp duty Additional price for landlords/second homes
First time buyers pay from 0% up to £300,000, then normal rates apply
£0 – £125,000 0% 3%
£125,001 – £250k 2% 5%
£250,001 – £925k 5% 8%
£925,001 – £1.5m 10% 13%
£1.5m or more 12% 15th%
*No stamp duty payable on property transactions costing less than £40,000 as this is considered low value and is not reported to HMRC

How much will you pay for stamp duty now?

Median £270,000 House: £1,000 – Savings of £2,500

£350,000 House: £5,000 – Savings of £2,500

£450,000 House: £10,000 – Savings of £2,500

£500,000 House: £12,500 – Savings of £2,500

£750,000 House: £25,000 – Savings of £2,500

£1,000,000 house: £41,250 – Savings of £2,500

Kwasi Kwarteng’s mini budget stamp duty reduction has been made permanent but will only save buyers a maximum of £2,500

How does stamp duty work?

Stamp duty is charged on the purchase price of the home and is settled at various rates over the thresholds.

First time buyers received stamp duty relief of up to £300,000, which has now been raised to £425,000. They have the maximum purchase price to which the exemption does not apply and it has also been raised to £625,000.

Previously, the stamp duty was over the £125,000 threshold at 2 per cent, then it rose to 5 per cent over £250,000.

Now the first £250,000 is exempt from tax and amounts over 5 per cent up to the 10 per cent limit at £925,000.

For first time buyers the first £425,000 is tax free and then the 5 per cent rate starts. If they buy property costing more than £625,000, they lose their exemption

The last major permanent stamp duty reform by George Osborne saw the bills eased for some home buyers at the bottom of the price ladder and ramp edges removed, but higher fees for those buying more expensive homes.

Stamp duty bills are still significant for those buyers under the Quasi Quarting cut, but they would see a £2,500 drop.

In April 2016, stamp duty was revised on buy-to-let and other ancillary properties, with a new surcharge of 3 per cent added to all prices. This will remain under the new higher threshold system. This means that stamp duty rates for buy-to-let and second homes start from 3 per cent up to £250,000, rising to 8 per cent on top of this.

Best mortgage rates and how to find them

Mortgage rates skyrocketed as the Bank of England’s base rate rose rapidly.

If you are looking to buy your first home, move or remortgage, or are a buy-to-let owner, it is important to get good mortgage advice from a broker who can help you find the best deal.

To help our readers find the best mortgage, This is Money has partnered with an independent, no-fee L&C broker.

The Mortgage Calculator backed by L&C allows you to filter deals to see which ones fit your home value and deposit level.

You can also compare different durations of mortgage rates, from two-year fixes, to five-year fixes and ten-year fixes, displaying monthly and total costs.

Use the tool at the link below to compare the best deals, factoring in fees and prices. You can also start an online application on your own time and save it as you move forward.

> Compare the best mortgage deals available now

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