Relief for homebuyers as bill slashing Stamp Duty until 2025 is passed by the Lords and will become law
- High interest rates on mortgages make it difficult to buy and sell properties
- Law increases the nil rate threshold of stamp duty land tax for all purchases from £125,000 to £250,000
- The bill increases the nil rate threshold paid by first-time buyers to £425,000
A law giving temporary relief on stamp duty has passed through the House of Lords and is ready for Royal Assent.
The Stamp Duty Land Tax (Temporary Relief) Bill aims to support the housing market and reduce the cost for buyers, as high interest rates on mortgages make it more difficult to buy and sell properties.
The bill increases the nil rate threshold of stamp duty land tax for all purchases from £125,000 to £250,000.
The bill also raises the maximum purchase value for first-time buyers’ relief from £500,000 to £625,000. All three measures will stay in place until March 31 2025
The bill also increases the nil rate threshold paid by first-time buyers from £300,000 to £425,000.
The savings made by these buyers on stamp duty can help increase their deposit and encourage mobility in the property market.
The bill also raises the maximum purchase value for first-time buyers’ relief from £500,000 to £625,000.
All three measures will stay in place until March 31 2025.
Treasury minister Baroness Penn said: “The tax system needs to work for those looking to get on to or move up the housing ladder, and the Government has previously made changes to support its objectives on home ownership and to support the property market.
“Stamp duty and land tax must work for all.”
She added that the first-time buyers’ relief will “help where affordability problems are most acute”.
However, the minister explained that the changes were temporary due to the Government’s “commitment to fiscal responsibility and getting debt falling in the medium term”.
Once this Bill passes, it will give statutory effect to the reduction in stamp duty rates brought in by Liz Truss’s government.
Source: Read Full Article
