Mini Budget 2022 – Income Tax U-turn

Following the government’s mini budget on 23 September 2022, the Chancellor, Kwasi Kwarteng, announced that the government will no longer proceed with the removal of the additional (45%) rate of income tax which was originally announced in the Growth Plan 2022.

Kwasi Kwarteng, Chancellor of the Exchequer did announce cuts to stamp duty when purchasing a property.

Currently there is no stamp duty pay on the first £125,000.00 of the value of the purchase price on a property but that has now been increased to £250,000.00 from today.  This could save you £2,500 if you are buying a property for more than £250,000.00.

If you are a first-time buyer, you would currently not pay stamp duty for a property where the purchase price is up to £300,000.00 but from today this will be increased to £425,000.00, to assist first time buyers getting onto the property ladder.  This relief is available to first time buyers who are purchasing a property for less than £625,000.00.

There are no changes to second homeowners, the amount of stamp duty payable remains the same, up to £250,000.00 stamp duty is payable at 3% of the purchase price, 8 per cent from the value of £250,000.0 to £925,000.00, 13% from the value of £925,000.00 to £1.5m and 15% from the value over £1.5m.