news release: truss government announces a reduction in stamp duty
Less than three weeks after Liz Truss was appointed the new Conservative Prime Minister (PM) a second corrective in stamp duty cuts has been announced in a mini-budget released this morning. The tax cuts are in response to the current economic crisis faced by the UK over the last three years due to an amalgamation of events such as the pandemic and the Russia-Ukraine war.
Chancellor Kwasi Kwarteng confirmed that there was to be a slash in income tax, a reduction to stamp duty tax, a reverse to national insurance increases, and a freeze on corporation tax. The cuts are reported to be costing the Government £45 billion by 2026/27.
For the property and housebuilding sector, news that stamp duty would be abolished on properties that cost below £250k will be good news for many. First-time buyers have also been informed that stamp duty will now only be collected on properties above £435k. These tax changes are imminent from today.
Speaking about the news released this morning, tdm’s Managing Director Tom Morris said:
“This morning’s announcement regarding the slashing of stamp duty comes at a pivotal time for the housebuilding sector. While many of us were hoping for a complete scrapping of stamp duty rather than a reduction, it does still feel like we’re finally going in the right direction. With many of these tax cuts aimed at businesses rather than the general public, we look now to see what will be done to help unplug the bottleneck of our current planning system and see more affordable homes being built across the UK.”