Mini-Budget September 2022 – Stamp Duty Land Tax
- National Insurance Contributions
- Income Tax
- Stamp Duty Land Tax
- Other Comments
- Government announces plans to cut energy bills for businesses
- Energy price guarantee plan caps household bills
- New plans for patients aims to tackle NHS backlog
Stamp Duty Land Tax
A number of changes are made to the Stamp Duty Land Tax (SDLT) regime. Generally, the changes increase the amount that a purchaser can pay for residential property before they become liable for SDLT.
The residential nil rate tax threshold is increased from £125,000 to £250,000.
The nil rate threshold for First Time Buyers’ Relief is increased from £300,000 to £425,000 and the maximum amount that an individual can pay while remaining eligible for First Time Buyers’ Relief is increased to £625,000.
The changes apply to transactions with effective dates on and after 23 September 2022 in England and Northern Ireland. These changes do not apply to Scotland or Wales which operate their own land transactions taxes.
There are no changes in relation to purchases of non-residential property.
|0 – 250,000||0||0 – 150,000||0|
|250,001 – 925,000||5||150,001 – 250,000||2|
|925,001 – 1,500,000||10||Over 250,000||5|
Residential rates may be increased by 3% where further residential properties are acquired.
Land Transaction Tax
The Welsh government has also altered its rates in relation to land and buildings in Wales for transactions with an effective date on or after 10 October 2022.
|0 – 225,000||0||0 – 225,000||0|
|225,001 – 400,000||6||225,001 – 250,000||1|
|400,001 – 750,000||7.5||250,001 – 1,000,000||5|
|750,001 – 1,500,000||10||Over 1,000,000||6|
Higher rates may be payable where further residential properties are acquired.
IR35 and off-payrolling
Over the last 20 years, there have been numerous changes to the tax system to try and address ‘disguised employment’ and to generate additional tax and NICs accordingly. In a surprise announcement, the government had stated that it would repeal the off-payroll working rules from 6 April 2023. However, it has been confirmed that this change will not go ahead and the off-payrolling rules will remain in force.
VAT-free shopping areas
The government had announced that it would introduce a modern, digital, VAT-free shopping scheme with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors. However, this change will not go ahead either.
The government had announced that it would freeze alcohol duty rates from 1 February 2023 but this will not go ahead.
September 27, 2022