The Government mini-budget as it relates to property in 2022
Chancellor Kwasi Kwarteng gave a fiscal statement to the Parliament. In his statement, he said that the Government’s aim is to have the economy growing at 2.5% in the medium term. He said that the Treasury’s growth plan is “built around three central priorities: reforming the supply-side of the economy; maintaining a responsible approach to public finance; and cutting taxes to boost growth.”
This statement has implications for stamp duty land tax
Stamp duty land tax: the threshold to which stamp duty isn’t paid (the nil-rate threshold) will increase to £250,000, from £125,000.
The threshold at which first-time buyers begin to pay stamp duty will increase from £300,000 to £425,000 and the maximum value of a property on which first-time buyers’ relief can be claimed will increase from £500,000 to £625,000. Stamp duty land tax only applies in England and Northern Ireland.
Changes to the stamp duty law on buy-to-let in 2022
The government introduced a stamp duty holiday in July 2020. This was in response to the COVID-19 pandemic
As a result, Buy-to-let landlords who bought properties during the stamp duty holiday made an average saving of £2,000.
The stamp duty holiday was in place until October 2021, when stamp duty rates returned to normal.
Landlords who buy properties in 2022 will now need to pay normal stamp duty land tax rates, plus the three percent surcharge for second homes and buy-to-let properties.
Here’s an overview of stamp duty rates for property investors in England:
Property price | Stamp duty rate |
£0 – £125,000 | 3% |
£125,001 – £250,000 | 5% |
£250,001 – £925,000 | 8% |
£925,001 – £1.5 million | 13% |
£1.5 million + | 15% |