Following Liz Truss succeeding Boris Johnson as PM on 6th September, new Chancellor Kwasi Kwarteng, today announced his plans for the UK economy.
The Mini Budget (as it’s been dubbed by the media) took place this morning, with the planned Stamp Duty Land Tax (SDLT) cuts being made.
In line with our service promise of delivering plain English legal advice, we have produced a blog to outline the top 3 property law benefits from today’s Mini Budget.
Here are our key takes:
Stamp Duty Reduction
Unlike the SDLT holiday, today’s announcement is for a permanent cut to the stamp duty thresholds. With effect from today’s date, the threshold of the price of a property before stamp duty is paid has risen from £125,000 to £250,000.
Stuart Milbourne, Head of Suffolk Conveyancing, reported this could save buyers on average £2,500.
In addition, first-time buyers will now only pay stamp duty if purchasing a property for £425,000 or more and first-time buyers will be able to claim this SDLT relief on property purchases of £625,000 or less. It is reported that an additional 20,000 people will benefit from this relief.
Tracking Supply and Demand
The Chancellor has also announced that he will increase sales of government land for the purpose of building new homes. On top of this, the government plans to streamline the planning process, making it easier to apply for and obtain planning permission. In addition ‘investment zones’ are being planned, although none of these are within the East of England.
Corporation tax increase cancelled
The proposed increase to corporation tax has been scrapped and this will remain at 19%. As a result, it is hoped the UK will be appealing to foreign investors, as well as benefitting limited company landlords. Therefore, if you are a Landlord, it may be worth buying property as a company or transferring your properties into a company to benefit from the lower rate of corporation tax.
Please note this is not intended to be legal advice. Therefore, if you have any questions relating to the mini budget please speak to one of our Lawyers at Attwells.
If you are wanting to move home as a result of the mini budget, please use the button below to receive an instant quote and instruct as online.