Chancellor Kwasi Kwarteng today announced a cut to stamp duty tax, but what does it mean for you? Under the old system, anyone buying a residential property costing more than £125,000 would pay stamp duty tax, but the government have increased that threshold from today to £250,000.
This means buyers will pay no stamp duty tax on the first £250,000 of a property, and none overall on a property that costs less than that.
The new stamp duty tax is then 5% on any amount over £250,000 up to £925,000, 10% on any amount above that up to £1.5 million, and 12% on any amount above that.
So for example, if you purchase a house from today for £300,000, you would pay 0% stamp duty tax on the first £250,000, then 5% on the remaining £50,000, which would equal £2,500, and so your total stamp duty tax payment would be £2,500. READ MORE:Tax cuts, bankers bonuses and energy bills: Eight key announcements Kwasi Kwarteng made in today's mini-budget Under the previous thresholds, buyers were also required to pay 2% tax on the portion from £125,001 to £250,000.Read more on manchestereveningnews.co.uk