This morning the Chancellor announced widespread stamp duty land tax (SDLT) reliefs that will be effective today.
The SDLT nil rate band has been doubled from £125,000 to £250,000. The government predicts this will enable up to 200,000 more people to move each year without paying any SDLT. This measure echoes the government's temporary stamp duty holiday in 2020 which aimed to stimulate a property market hit by Covid-19 uncertainty, albeit the starting threshold of the temporary measure was set at £500,000 rather than £250,000.
Additionally, the Chancellor announced increased reliefs for first time buyers. The nil rate band for first time buyers has been extended from £300,000 to £425,000 and the value of which first time buyers' relief can be claimed has also risen from £500,000 to £625,000. The government expects that this will significantly reduce stamp duty bills, as first time buyers can access up to £11,250 in relief. This will be welcome news for many prospective first time buyers hoping to get a foot on the property ladder. However, it will be interesting to see how the property market responds to these new measures given the current economic climate.
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