Stamp duty has been cut for all home buyers as part of the new Conservative government’s plans to help turn around the economy.
Chancellor Kwasi Kwarteng announced the tax, which is levied on personal property or land purchases, will now have a higher threshold before it has to be paid.
The change is effective from today, he told MPs as he announced a swathe of economic changes as part of a “mini-budget”.
Kwarteng cuts corporation tax and stamp duty – follow live mini budget updates
These are the new price thresholds, after which stamp duty must be paid:
• After the first £250,000 for people who have purchased property before (it was £125,000)
• After the first £425,000 for first-time buyers (it is currently £300,000)
• For first-time buyers of homes more than £425,000, they will be entitled to 5% relief from that price up to £625,000 (it is currently up to £500,000)
Read more: The chancellor’s key mini-budget announcements
Announcing the cut, Mr Kwarteng told MPs: “The steps we’ve taken today mean that 200,000 more people will be taken out of paying stamp duty altogether.
“This is a permanent cut to stamp duty, effective from today.”
Stamp duty is only paid in England and Northern Ireland, with home buyers in Scotland paying land and buildings transaction tax, set by the Scottish government.
In Wales, purchasers pay Land Transaction Tax, set by the Welsh government.